Intel Inc. was at a crossroads, struggling to maintain its leadership in the semiconductor industry. After missing a critical opportunity to diversify into the smartphone industry as a first mover, it faced a growing threat from the ARM-based ecosystem, which included ARM Inc., fabless chip designers, and contract foundries. Intel’s vertically integrated business model, which combined chip design and manufacturing, was in crisis, since its manufacturing processes lagged behind the industry leader, Taiwan Semiconductor Manufacturing Company (TSMC). Intel’s recent efforts to offer contract foundry services to external chip designers had encountered setbacks due to technological difficulties. Intel had even begun outsourcing production of its latest CPUs to TSMC, further underscoring its own manufacturing challenges. In 2025, a critical strategic decision loomed: Should Intel continue investing in revitalizing its manufacturing plants (“fabs”) to regain the industry leadership it once held, or should Intel spin off these fabs and focus solely on designing chips?