I'm usually a big fan of stratechery, but for once I disagree with the explanation of Intel's decline.
I think it's much simpler: being number one in fab technology is mostly driven by volume: whoever has the most volume wins. During the PC era, Intel had the most volume, so they also had the best fabs. It's a winner-take-all, self-reinforcing ecosystem.
But in the last 10 years, mobile has had the highest volume. That's what allows TSMC to have the best fabs, and Intel is struggling. That's all there is to it. Nothing to do with services or software.
I think it's much simpler: being number one in fab technology is mostly driven by volume: whoever has the most volume wins. During the PC era, Intel had the most volume, so they also had the best fabs. It's a winner-take-all, self-reinforcing ecosystem.
But in the last 10 years, mobile has had the highest volume. That's what allows TSMC to have the best fabs, and Intel is struggling. That's all there is to it. Nothing to do with services or software.