Interesting move considering that having design and manufacturing separate for reasons of incentive alignment and conflict of interest seems like the more successful strategy.
But I guess with RISC-V the market is still so small this might help them try and create a niche and induce some demand? Because otherwise I think they have it pretty rough since abandoning the leading edge race. This article from last year reported that clients are switching to smaller nodes faster than expected (which I assume is a trend that has continued) and China probably also has only accelerated their own capacities including for older nodes.
I mean in the server space Linux has already won and is doing just fine. Imo it is actually the reverse and sad that it needs this level of turmoil to get Europe to even think about software and digital infrastructure as fundamental. And even with all that's going on they are just dipping their toes into it rather than properly comitting to a radical shift. Hell, even with all that's going on some parts of the police here in Germany are still getting into bed with companies like Palantir.