Just because they're vertically integrated doesn't mean they don't have competition, just that it's difficult to judge one half of the business on its own.
Intel's own messaging in this regard refers to the competition.
Ok, that's about Intel's "custom fab" business, which would indeed compete with TSMC. When I was there, that didn't exist AFAIK, they just made their own chips, so I wasn't aware of this (as I said, I haven't kept up much with that company since I left).