I don’t think so. The degrading processors are certainly bad, but in the grand scheme of things won’t move the needle. The reputation loss is probably worse than whatever fine they end up paying (and they will drag it out).
The split would be between design and manufacturing. And it would mean a massive shift, not business as usual.
The design side is probably in better shape and would increase their use of TSMC instead of using the now spun off Intel fabs.
The manufacturing side would have it rough. But we are talking about only one of 3 manufacturers of leading edge chips here (together with tsmc and samsung), not something you “conveniently let go bankrupt”. They’d try to raise more money to finish their new fabs and secure customers (while trying to make up for the lost volume from the design side). But realistically I’d say that similar to Global foundries they would drop out of the expensive leading edge race.