On Intel as a second source;
Usually the reasoning for a second source is to keep your supplier in check. Normally the negotiation around second sourcing goes a little like this:
“Look, I know you have a better product and are better able to deliver but supplier B is offering to do this for 30% cheaper and we can’t ignore that cost differential.”
Then supplier A will usually come back with a better cost, maybe 20% less, because they don’t want to give their competitor a foothold with their customer. You just need a somewhat credible supplier B, so you throw a couple bones to supplier B now and then to keep them in business but really you want to go with supplier A.
What will make this more complicated is that Intel is expected to be higher cost than TSMC, so it’s hard to credibly negotiate and say “if you don’t give us the pricing we want, we are going to pay 20% more to Intel”. Unless of course Intel is willing to sacrifice margins or run at a loss, which they may well do. (Anyone remember contra revenue? Lol)
IFS will get thrown a few bones, and Intel PR can be expected to spin that into “Big name company chooses Intel!” With big name company almost certain to be Qualcomm because they are the most aggressive negotiators.
But realistically the best Intel can hope for is distant 2nd, which is not going to be a profitable venture.
