If Intel's cost structure is poor (i.e. they take a low yielding process and shove it into the production fabs to build all of their products), then this will have a significant negative impact on the company's overall profitability.
What complete absolute NONSENSE from you. Do you even think about what you claim? If Intel's current fab costs alone per chip are $2 to $3 more than the foundries due to lower yields and or less dense designs, then bringing those yields and densities up to par will yield at most $200 million more profit per quarter. Intel's high ASPs (2x-3x mobile) has allowed them to perpetuate low density designs at reduced yields. Their only excursion into low ASP regime was mobile where density/yield and thus production costs are critical..........Hence SOFIA at TSMC and 58mm^2 Broxton only in the minds of people like YOU.