Intel's 14nm process is in most ways better than Samsung's 10nm (Qualcomm's fab for this chip). IMHO this isn't really going to be won on feature size of the process between the two.
The advantages Cavium and Qualcomm have are cheaper chips (also more integrated, SAS, PCI lanes) with higher core counts and more memory channels than Intel. In some applications the higher memory channels count and bandwith will be very valuable (HPC). Intel will be able to discount the heck out of their high core count Xeons to match on price and they can lower the clock to match on IPS for each core. They can't add a memory channel where it doesn't exist.
While I agree that the vertical integration of Intel's past may not be the best way for the future, they still have the best process engineers in the world. They still have the best process for the foreseeable future. They also have some of the best semiconductor engineers out there. So while there is a fight coming. Intel is hardly "fucked" or headed for decimation.