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One key part of this is buried half-way in:

> Intel said under its enhanced outsourcing plan, it would ask others—including Taiwan Semiconductor Manufacturing Co. TSM -1.95% and Samsung Electronics Co. —to make crucial components of its chips. The move takes advantage of a design approach Intel and others have embraced: making semiconductors in a Lego-brick-like manner. Mr. Gelsinger said the company would, in some cases, outsource the core components of its central processors, the brain of a computer.

He seems to be pragmatic. If there’s anyone that can reinvigorate Intel it’s going to be Pat.
Worked so well for Boeing that they called it a huge mistake and swore never to do it again.
Everyone has to make their own mistakes to learn.
Wise people can often learn from the mistakes of others.
People like to think they are smarter and they've figured out the real way to do it; overcome the reason for initial failure. A few people may be wise, but not the great majority.
It works exceptionally well for Apple, doesn't it? The devil is always in the details.

Having said that, I expect Intel to keep the most advanced, most profitable processors in house.

Apple is coming from the other direction. They didn’t know how to make CPUs or SoCs and built up to the M1. Intel is talking about outsourcing the challenging parts, the same way the 787 outsourced the wings.
I suspect that ARM will be a real competitor as well for x86 in the future, that will make the turnaround even harder than what it looks like, even with great execution. (Writing from an M1 MacBook Pro)