Snatchface,
It's pretty obvious from your statements that you do not work in the IC industry. I've worked for Intel for 7 years now and I have gone through the good times (for both AMD and Intel) and the bad times (ditto). Personally, I am VERY glad that AMD became an actual competitor to Intel about 4 years ago. Why? Because Intel as a company works best when they are challenged and pushed. Intel was on top for a LONG time for a VERY good reason: they where making the best products on the market at the time. People who could afford them (yes, they DID cost more!) bought them. The folks that couldn't, bought else where. Then AMD started catching up. I saw it coming a LONG time before anyone in management said anything about it. I saw how Intel's best processors just wasn't as big a leap over the previous generation as in the past. I saw the chipsets go from the kick ass 440HX to the dismal 810/815/820 series of chipsets. AMD came on strong with their Atlon and kicked Intel in the teath by actually taking market share. Via and other companies did the exact same thing in the chipset market.
So what did Intel do? Did they start selling at cost or less to drive these upstarts under? No. They could have. With the cash reserves they had at the time, it wouldn't have really hit them too hard. But they didn't. They did lower the price, but they followed that up with a no holds bared push to reduce the cost per die (and as an engineer for them, I can tell you that SUCKED!) They cut costs everywhere they could. A lot of freebies that had been the norm in the industry (lots for free food on a semi regular basis, free T-shirts, large group meetings over seas, etc) came to a VERY sudden stop. They also started making a very concerted effort to evaluate where they went wrong and figure out how to get it right. I already had a pretty good idea, but then I'm a computer nerd at heart anyway! This took time. Large companies do NOT switch directions overnight. Even when they do, it takes many, many months before the results will be seen on the store shelves and even longer before they will be seen in the bottom line. Intel had a lot of catching up to do. The one saving grace for them during this time is that AMD could NOT meet the demand of CPUs even if Intel would have quit selling the chips all to gether. This gave them time. And they used it. They designed better processes, better designs, better packaging, and more efficient manufacturing processes. In time, this put Intel back in the lead (yes, I know they never lost the majority of the market share, but they definitely where NOT in the bragging rights driving seat for quite a while) and they started getting some of the lost market share back. One thing Intel did through out this whole time: they invested HUGE amounts of money on R&D and on constructing new and better fabs. It's paid off now and it will really pay off when (it seems more like "IF" at this point) the tech market turns around. They intend to be in a position to hit the up turn with all feet on the ground and running hard right out of the gate.
You also implied that Intel has done unetical things in pricing. Show your facts. But you can't, because you don't have any. In the seven years I have worked for Intel, no one has EVERY pushed us (blatently or overtly) to fudge the numbers to make things look better than they really where. Actually, they have pushed pretty hard to make sure that we have the right procedures and audit procedures in place to prevent any "funny business". I don't expect Intel to get a big government audit. But if they do, I DO expect them to pass it without any real problems. That Enron type of coruption works it's way down the line. It just doesn't feel like any of that type of crap is going on. One thing they HAVE done is push us (pretty much everyone at Intel) as hard as they possibly could to get prices down and profits up. But no funny business. Trim your costs, improve your efficiency, sell more product, and in general see your profits stay up even as your ASP goes down. Needless to say, I can't share any information on what has been done, but I can say that everyone has challenged every conception in an attempt to find a better, cheaper way to do things at every level of the organization.
Finally, you stated that by the time the yields were up, the next factory would already been being built. How little you know. That definitely was the way things worked many years ago (at all IC companies, not just Intel). Not any more. I wish I could share some yield/vs time from start up data for a few of the various processes that Intel is currently running, but... Just settle for the fact that you are wrong in this statement.
So now that everyone is absolutely sure that I nothing more than an Intel bigiot (I mean, hey! I flat out admitted I have worked for Intel for 7 years!), let me share another side. I am a computer nurd. Have been for a LONG time. The first computer I worked on was a Timex Sinclair. My friends and family come to me when they have computer questions (either repair or upgrade) and I have recommended various systems to a LOT of people. And during the dark hour for Intel, I actually recommended to a couple of friends that they would be better served buying an Atlon system and even recommended the various parts I would purchase if I was buying it. And they did. I've always believed in compitition and will always recommend the best system/part when my friends ask based on what they need and what they want. And it's not always Intel Inside.