Given that AMD is fabless these days, you would have to compare Intel's gross margin to AMD and TSMC's combined to have an oranges to oranges comparison. In that light AMD is doing pretty well.

The other factor is going to be that TSMC has 5nm in risk production already. If they bring 5nm fabs online before Intel has a real answer to their 7nm process, AMD could be buying capacity from the 7nm and 5nm fabs at the same time.