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They have mentioned a few times based on the PPA of the best node. One thing they hinted at on this call was charging "leadership prices" for 18A wafers, which tracks with where they want to be with 18A. In a statement I find somewhat conflicting they also mentioned undercutting TSMC to gain marketshare. I don't really get how you can charge leadership prices and undercut at the same time. For easy math let's say N2 price is 10k a pop and for sake of argument say that 18A is 10% """better""" than N2. If intel priced to undercut since they are the challenger at 9k, well that isn't really "charging for your leadership". If they sell at 11k they are charging a fair market price for their leadership, but aren't really undercutting to accelerate foundry growth. I guess there is a narrow band of 10.5k were they are charging for leadership but giving you more bang for your buck, but I would assume it is hard to find that window when we talk with any degree of nuance and how we weight certain criteria.
They have mentioned a few times based on the PPA of the best node. One thing they hinted at on this call was charging "leadership prices" for 18A wafers, which tracks with where they want to be with 18A. In a statement I find somewhat conflicting they also mentioned undercutting TSMC to gain marketshare. I don't really get how you can charge leadership prices and undercut at the same time. For easy math let's say N2 price is 10k a pop and for sake of argument say that 18A is 10% """better""" than N2. If intel priced to undercut since they are the challenger at 9k, well that isn't really "charging for your leadership". If they sell at 11k they are charging a fair market price for their leadership, but aren't really undercutting to accelerate foundry growth. I guess there is a narrow band of 10.5k were they are charging for leadership but giving you more bang for your buck, but I would assume it is hard to find that window when we talk with any degree of nuance and how we weight certain criteria.
There is always switch cost to replace the leading company. Typically there will be 10-20% price off incentive which mean you will start from GM at least 10-20% lower than your expectation to gain market share.
IMO, don't be too serious about this diagram. No matter how many individual PnL divisions Intel has, they all eventually consolidate into one Intel's accounting book and one PnL. Intel will continuously allocate cost and profit to make certain divisions look better or worse.
