Why not? Look at Samsung. Do they only make screen for themselves? No. Anyone that wants can get them. Why? MONEY to further their other ventures.
Intel needs their FAB advantage to be competitive with ARM on cost and power efficiency. Right now ARM is set to push for 32nm and 28nm FAB, but Intel will soon be pushing 22nm. It's keeping ahead of ARM on FAB that Intel needs to maintain to compensate for ARM's normal cost and power efficiency advantages.
Companies like Samsung are already in the ARM market and not competing against it. Thus their only concern is getting the most market share rather than worrying about leveraging technical advantages.
While Intel making ARM parts would only help to drive ARM costs down even further with increased competition and production capabilities of all the manufacturers combined.
If anything, Huang's suggestion was to help his own company as Nvidia isn't a manufacturer and needs to order parts from other companies.
Like one of the reasons we aren't seeing all next gen ARM chips go 28nm and 32nm is still showing up is because many of the manufacturers are having problems perfecting the 28nm FAB, but Intel obviously already got most of those issues handled with going with the even harder to handle 22nm and will likely be first to go 14nm as well in 2014.
So no, it's not in Intel's interest to help ARM at this point while they're still trying to push their own products.
Samsung doesn't sell their best screens, they keep it to themselves for their flagship phones. Also, Samsung hasn't been selling its ARM SOC either. It kept the Exynos to themselves.
Intel has trouble getting into the mobile market so that's why they're pushing their fabs to the limit. They're advancing faster than Moore's "law" in order to get an advantage in the manufacturing process and be competitive in the mobile market.
Why would Intel want to help ARM chip makers (some of their biggest competitors since they dominate the mobile market and ARM is coming to Windows now) with their largest problem and at the same time remove their main advantage against them? Does not compute...and Nvidia's CEO has never been on the bright side.
Baffling? Hardly. Intel should become very strong in ARM, ARM is not going away. Its only going to grow. At some point, the datacenter will become more and more ARM as well. Intel should start making best of breed ARM processors before its too late.
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