First Intel expand, next they will shrink
Intel operates in waves, as dictated by Wall St.
Intel diversify into all sorts of effort then as soon as they cock up a few quarters, their investors tell them to pull their heads in and "focus on core competence". Intel then sheds all their non x86 efforts and stays x86 focussed for a year or so then starts to build up again...
That has been the Intel Way for years and there is no reason it will be any different this time.
During the late 1980s Intel had a massive tilt at embedded computing. 8051, i960, etc etc... Then in the 1990s the got into StrongARM and xscale which they then sold off to Marvel.
They have invested, then cut flash memory efforts many times.
Why should it be any different this time?