AFAIK Intel is splitting its fab business into an owned but functionally more separate unit. The chip design unit will fab where it is best to do so and the fab unit will take whatever business is best to take. This could theoretically mean Intel making chips for AMD if it really does go this way.

Intel previously stated that they were ramping their similar level of tech (20A) in 2024. So outsourcing to TSMC at a later date seems like they aren't expecting their internal fabs to be able to supply enough for what they need.

...while at the same time asking congress for more handouts to build its own fabs.

And how they secured allocation and AMD didn't? Why would that be the case?