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I think the issue was they couldn't keep their own fabs running hot enough at a large enough scale with just the volume of silicone they were selling.

If the fab sitting idle or production is bellow running cost then they are in trouble. Better to spend that money on R&D.



Let's not forget to that they had to sell the fabs due to Intel anti-competitive market squeezing. They would offer the chips for free, but vendors would still be better off with the Intel kickbacks.

They were later compensated, but the damage done was incredibly destructive.




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