(I think you've confused ARM and AMD, FWIW!)
it's surprising to see how badly they're scrambling to hit even 10nm, little lone 7nm
The feature size there is a bit misleading – "Intel 10nm" and "TSMC 7nm" are roughly equivalent, with IIRC the Intel 10nm process actually having a higher transistor density. The TSMC chips aren't really "two nodes ahead" – but it is likely that Intel will lose its process lead for maybe a year or so.
I get the impression that Intel overextended on their 10nm process, in that they were perhaps a bit more ambitious that other manufacturers and it came back to bite them when there were scaling problems. On the other hand, last I heard was that the scaling problems experienced with the 10nm node haven't held up Intel's 7nm node, which could well see them re-establish their process lead.
At the end of the day, it's great that the market is seeing some more competition, so hopefully we will all be able to enjoy the benefits from a variety of manufacturers soon!