Their margin pressure is due to TSMC as well plus their Fabs utilization dropping due to wafers at external.
That is certainly part of the margin issue. I believe that Intel has been subsidizing their low margin business with their high margin business for quite some time. Now, they are in a position where they are getting killed in many of their traditional high margin products.
In addition to this, Intel have embarked on a mission to compete head to head with TSMC for the cutting edge node crown........ wow. Good luck to them.
This is a prohibitively expensive venture to try to amortize across a fraction of the unit sales that TSMC has.
It's a near "perfect storm" for Intel.