Goddammit. I'm investing in INTC for long term. This is not good long term.
Their fabs are already struggling to beat TSMC. They are already using TSMC to make their chips.
How can they be better if their workers are afraid of their job securities
Long term wise Intel might have to get out of the fab business. It's not what Intel likes but it might be inevitable.
The problem with Intel's fabs is not whether they are cutting edge or not. They are (or at least were). They are very good at what they are doing. It's not a question. The problem is cost.
Intel didn't have to worry about cost when their process was way better than anyone elses'. However, even at its heyday Intel didn't fab chips for others (they did some small scale projects for some), the main reason is cost.
You can easily hide high costs when you are a vertical integrated company. Your margin is the combination of CPU + process + packaging. As long as your CPU makes a lot of money, you can be much more expensive than your competitors in process and packaging. On the other hand, AMD can only make margin on the CPU, as they have to pay TSMC and others for the process and packaging.
This works well even if your process is hugely more expensive than your competitors as long as your process is competitive performance-wise. However, for Intel there are two emerging problems: first is that Intel's process is no longer more advance than competitors like TSMC, and second that Intel's process is much more expensive than competitors. And combined with the fact that Intel's CPU no longer dominates the market, suddenly you have a lot of fab capacities need filling but you don't have enough CPU to fill them, and that's a big problem.
Intel tries to go into the foundry market in order to help them filling the extra capacities, but with uncompetitive cost and performance it's hard to attract customers. Performance they might be able to solve, but cost is something that they can't, especially if they insist to build most of their fabs in the US.
So with these in mind it's quite clear why Intel went on doing GPU and AI chips, because that's one way to fill up their fabs.