IBM just sold their production fabs. They now operate like any other fabless chip maker, by using foundries for production. Plus they still have very sophisticated prototyping fabs to get their next-gen designs perfected before they send them to the foundry.
IBM also made an ambitious 5-year business plan in 2010 that their employees at this point refer to as "Roadkill 2015". I certainly applaud them for thinking beyond the next quarter's reports, but it seems like there has to be allowance to make midcourse corrections. There are significant technical challenges listed here, and I would bet that there are others of which they are not yet aware. Is this arrogance or confidence in technical prowess? Is there a difference?