Intel Licenses ARM Technology to Boost Foundry Business
Andy Grove famously said: &quot;We have a simple strategy.  We build fabs, and then we fill them.&quot;<p>That is not just a glib remark.  Intel builds leading edge fabs, and runs them very well.  Then it simply looks at every design it could run, and ranks them by gross margin per wafer.  When the fab is full, low margin projects either run on non-Intel fabs or alternatively the teams get redeployed.<p>And the kind of fab capacity Intel has is a strategic weapon.  If Intel decides your corner of the market is going to be paved with silicon, prepare to get paved over.<p>My take on Intel licensing ARM is two-fold: 1) They have decided the gross margin per wafer of running some ARMs is looking pretty good, and 2) they perceive a benefit of using Intel&#x27;s fab technology as a strategic weapon to own as much of the ARM market as they want.