I was also thinking the same that if Intel opens its door to fabless companies then it can give tough competition to TSMC, Samsung and etc. The only downside is that Intel will need to develop process technology for wide range of designs and constructs.
Good point Larry...I am sure Intel would love to cripple ARM business when things pick up and foundries get full...but I am sure ARM inserted soem contract provision against situation like this...woudl love to see the contract too ;-)
You are right. The high end FPGA are expensive (> $5,000) and to compete in the server market, they have to offer at least 5Xperformance advantage over x86. This is very unlikely and hence not a real volume competition to the X86.
This is an easy decision when fab capacity is available, but if demand ratchets up there might be some very interesting meetings going on at Intel regarding prioritization of access to assets. I'd be curious to see how the contracts read in this case.