Are you living on Mars or something?!
Everything has increased in price without demand increasing.
It's called inflation.
So everybody tries to dump excess TSMC product but TSMC still raises prices but intel is the one in trouble?!
At least the (almost) only client of intel FABs is intel, they might reduce production if they have to but that's all, they aren't going to loose clients/orders/whatnot.
There is no "everyone else" the only other FAB is TSMC and they also increased prices.
In 2020 \ 2021, the demand curve shifted up, towards the top right in the graph below (D2) from a stable baseline (D1). The covid environment stole demand from the future in this space.
Here in 2022, that demand curve is rapidly shifting down towards the lower left (D3), while supply is rising as production increases. This means either supply has to be reduced for current demand, or prices have to come down.
TSMC has also implied they are reducing capital expenditures for new plants and equipment. While I was writing this, ASML came out with great earnings but are reducing future revenue projections, which implies TSMC / Intel / Samsung are not buying as much from them as originally thought.
TSMC, AMD, Intel all have huge gross margins. If they over-produce, they will have to lower prices at some point. The only other option is to warehouse chips, but that simply kicks the can down the road - and in an environment where they are introducing new architectures this rapidly that road is not a very long one.
I don't agree with Intel raising prices because they seem to want the OEMs to eat the negative effects of a demand curve shift. OEMs are unlikely to do that, for the same reason Intel doesn't want to. They are all in a cycle of likely flat or maybe even negative growth for a year or so IMO, depending on how the economy shapes up.