Intel's foundry side has been floundering so hard that they've resorted to using TSMC themselves in an attempt to keep up with AMD. Their recently launched CPUs are a mix of Intel-made and TSMC-made chiplets, but the latter accounts for most of the die area.
I'm not certain this is quite as damning as it sounds. My understanding is that the foundry business was intentionally walled off from the product business, and that the latter wasn't going to be treated as a privileged customer.
no, in fact, it sounds even more damning because client side was able to pick whatever was best on the market, and it wasn't intel. Client side could to learn and customize their designs to use another company's processes (this is an extremely hard thing to do by the way) faster than intel foundry could even get their pants up in the morning.
Intel foundry screwed up so badly that Nokia's server division was almost shut down because of Intel Foundry's failure. (imagine being so bad at your job, that your clients go out of business) If Intel client side chose to use Foundry, there just wouldn't be any chips to sell.
