Should you listen to Wallisweaver, Marsavian, Semi-conductor guy or Alexander D.?
ARM may not pay for the foundries but their vendors do by the price added on to the wafers to cover process development costs. Intel's mobile Atom chips are on fully depreciated n-1 process wafers already paid for by the PC chips. Like Otellini warned, Medfield will not be beaten on price and you better believe it because Intel's yields are among the best if not the best in the semi industry. East and his cocky ARMy has awakened a pleasantly sleeping 800lb Gorilla and he is not very happy about it and is charging his way full force now lol. Ask AMD how that story turns out in the end, a stock price that went from $42 to $2 in only a few years ;-).