TSMC also AFAIK is forbidden from setting up bleeding-edge fabs outside of Taiwan?

Four more 2nm (or below) fabs in Arizona. That's bleeding-edge or very close to it.

By end of decade, no? Seems like domestic fab will always be two steps behind. I assume by design.

They're building 1.4nm in Taiwan

Will they remain bleeding edge by the time they are operational?

Intel latest is the bleeding edge and more advanced than TSMCs.