Want to know why Intel spends more and more on R&D? Because the fabs are consuming most of it. With each smaller node, the manufacturing costs are getting bigger, which I have pointed out many months ago. Ask yourself, why there has been no immense innovation from Intel for years, despite GIGANTIC expenditures on R&D?
Market is shrinking, and they have to compete not only with AMD, but with ARM. And ARM is biggest threat to Intel. Actually maybe most of you do not get it, but ARM is a threat to both Intel and AMD, and x86 architecture. Every possible way Intel can feed the fabs both with work, and with money, is best interest of Intel. Even if it requires allying with their competitor.
Believe me, I am not arguing about this. I am just providing a point of view, for understanding the situation of Intel, and the reasons why Intel may allow in future their fabs to manufacture products for other companies than Intel, itself.
Intel owns the server (and workstation) market, where AMD and ARM are irrelevant. That market is not shrinking and it is the most profitable. The Skylake Xeon will be a significant improvement over anything available now. How are AMD and ARM which are both fabless going to compete in the server space?