Intel is intel because of x86, not because of their fab. 10nm is what, 4 years behind, does anyone feel confident 7nm will be ready in the next 5 years? Having a superior architecture (which they don't anymore) can only compensate for so much regarding node size. Intel isn't going to pull that one around. Having your fab in-house only makes sense if you're state of the art. At some point, not admitting defeat and just keep increasing TDP is false pride.
Intel is what it is because of fab. For many years, they were way ahead. 5 years ago AMD also had x86 but was very much behind and almost went bankrupt.
Stink or otherwise, they are actually very desperate!