Credit to @lyo+1orfgVya
This isn’t good
Based on some calculations I just ran, Intel doesn't have sufficient cash to both purchase / outsource current designs to TSMC .AND. fund new process/fab build out for IFS.
The amount of cash needed is simply not something Intel can fund out of margins being generated.
The options are:
scale back on IFS, we cannot use the 'if we build it, they will come' approach
raise large sums of additional debt and/or equity from capital markets (very expensive).
split the firm, give up IFS (10 - 15 years to break even won't cut it with investors).
Of course Intel finance has already run scenarios with high med and low PC recovery and revenue projections for IFS. If my analysis is wrong, please chime in and explain who this company is supposed to survive for 10 more years.