Intel - Intel - tried to compete in the embedded market and has recently quietly withdrawn several of its products. It's a tougher market than it sounds, and it's also more conservative than you'd expect.
Or the startups: indie-semi, who sell mcu's built as lego's from multiple dies, affordably! which allows them to do custom-design and semi-custom design of mcu's per customer , while offering a large library of standard mcu's.
Or terechip, who built a chip packaging process who can handle dies orders of magnitude smaller than current systems - opening possibilities for far cheaper mcu's and other simple chips.
Or even ambiq-micro, which created a way to design mcu's that take ~10x(?) less power by enabling transistors to work on an extremely low supply voltage.
This is how you compete with entrenched competitors. By doing something they cannot do.
And Intel ? their fab doesn't even fit mcu's(no flash on logic processes, not good fit for analog). They had no advantage, no differentiation( maybe besides their neural network, a feature that didn't seem to attract customers). How did they expect to win ?
Don't try to conquer ARM doing what ARM has done, time doesn't go back and the small world of embed big wigs will ignore you.