The business strategy decisions behind CPU fab is really interesting over the past 15 years.
AMD made a budget clone of Intel two decades ago. Then Intel made a misstep and released Northwood Pentium 4. AMD used less power and was faster. And AMD decided to go with DDR memory, while Intel went RDRAM. Then AMD was king when they went AMDx86-64 for 64 bit and Intel went Itanium.
Then AMD made a huge miscalculation on the future of multicore computing and designed Bulldozer, while Intel got their shit together and went down the hyperthreading route and released CORE/Core2/Core2Duo chips. And Intel was king for a decade.
I don't know the exact timing, but AMD needed cash and sold their fabs to raise money, which became TSMC GlobalFoundries, sorry. GF learned how to make stuff small since smartphones became a huge market. Then AMD let an engineer run the company and she invested in the Zen architecture, which could be made by GF with their lessons from the mobile world.
This is my take. By AMD turning GF loose, GF could date other people work on mobile projects, which helped them learn.
It's a side note now, but Intel hung on to their fabs and lagged behind GF. AMD let their fab go and benefitted from it. EDIT: I had some facts wrong. It's possible Intel fabs are ahead of GF.
As a side note, Intel did try fairly hard to get into mobile like GF. They had the Atom chips and went for tablet, Ultrabook, netbook, and mobile. I had an ASUS Android phone with an Intel SOC. So it's not like they ignored mobile, but it didn't benefit them as much as TSMC.
It's not really. Them achieving 7nm has indeed been a surprise considering the 14nm equipment restrictions.
"The finding comes as the United States scrambles to figure out how Chinese telecoms giant Huawei was able to produce an advanced 7 nanometer chip to power its Mate 60 Pro smartphone at China's top chipmaker SMIC, despite the export curbs announced last year." Reuters
It really is super impressive though. There are only a handful of fabs internationally and I think all of them outside of China use machinery made from 1 company only for advanced processes.