So a no-name chinese design house managed to upstage AMD in getting 28nm functional silicon out of GloFo?

Really?
The Cortex A9 macro they are using is much more lenient for process restrictions than anything AMD wants to ship. Basically, their chip is easier to make. Also slower.
ARM servers is nothing new, they have been there for a long time. And gotten nowhere.
They have had quite a bit of restrictions that have been deemed too onerous. (Notably, the memory pipeline on most current arm chips is just too horrible for server use.) ARM and the various server vendors have worked to remove those, one at a time. Their chips are getting better. I expect the 64-bit arm servers to sell quite well to certain segments. However...
While ARM just taped out the A57 core, Intel has been sampling its "Avoton" micro-server SoC since at least October, if not earlier.
They won't capture all that much of the dollar value of servers, and Avoton won't do much to hurt them, because it's all about cost.
The segment they are aiming for is the lowest of the low cost servers. Things running php or Java or Python to serve web pages. The workload parallelizes really well, because the only point of communication is the database, which will live on a fast box. This means that single-thread performance won't matter that much. The workload is interpreted/jit compiled, so instruction set won't matter. And the workload is horrible from a performance standpoint, full of branches and stalling loads, meaning a top-end core has much less performance to extract compared to a weaker one.
There are a lot of boxes running this kind of code, and the only thing that matters to them is throughput per dollar, counting both power use and cost of equipment. All the presumptive ARM server vendors are talking about the power advantages of ARM. This is smoke and mirrors. ARM has some inherent architectural advantage, but Intel's process advantage buries this. ARM presently has some platform integration advantage, but Avoton will likely match this. In the end, ARM will be barely able to match, or more likely fall a little behind in the throughput/watt race. Leaving the one
huge advantage the ARM servers will have, but which is one the vendors don't want to talk about. Once there are several competent ARM microserver chips out there, they will compete each other to near zero margins, and Intel won't want to match the system prices because that would mean losing more profit on some other segments where x86 can fetch a premium.
I predict that Intel will simply price Avoton out of the market, conceding it to the ARM vendors. ARM won't so much capture this market as it will destroy it. It's a significant part of the server market, but even today it's not nearly as profitable as the rest of it, and after the dust settles it will be effectively commoditized.