Intel Corp (INTC)

[DewDiligence]

Re: Fab vs fabless business model

For companies who have plentiful cash flow and ready access to the capital markets (e.g. INTC), in-house fabs can be expected to produce a better product with a higher gross margin for the reasons cited in #msg-43570640.

For companies who struggle to pay their bills and can borrow money only on draconian terms (e.g. AMD), the fabless business model is clearly preferable.

You’re probably thinking, “Well, duh!” but it seems that some readers of this board haven’t yet put this together.