Let me try to remove the corporate spin...
So, they say they will meet guidance for the year, but its going to cost them an extra 1 billion just to meet guidance? If they are guiding the same, and spending more, that means they will earn 1 billion less just to meet what they already guided. Thats not good. And all that in a market that is increasing demand, where it should be easier to exceed initial guidance.
They also wouldn't invest another 1 billion in their 14nm fabs if the 10nm outlook was looking any better, or coming to market anytime soon.
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Its basically they removed 14nm capacity in preparation of a 10nm transition. 10nm fell flat, and is no time soon. They knew this when they guided, so guidance was for reduced 14nm capacity; but now they aren't able to meet guidance on the capacity they have left. So, their only response is bring the 14nm capacity they removed back online until they can fix 10nm so they can meet guidance.