> domestic semi companies (NXP, ST, Ericsson, Nordic, Infineon, Bosch, AMS, etc.) are only competing for relatively low margin chips with high competition

Then maybe they should compete? (though those are not small companies - and with most products that are not as popular with Intel but are popular in other areas)

I think they missed the ARM boat, possibly. But they should go and ask for a slice of that money.