On: Japan on edge of EUV lithography chip-making revolution

[Panzer04]

But how much of the monetary value generation derives from small nodes?

Surely the vast majority of fab income derives from these small nodes, just based on the sheer pricing disparity between complex semiconductors and everything else.

[ethbr1 → Panzer04]

Compounded by the availability of the technology.

Few leading node machines = machine manufacturer/fab can charge high margins

Multiple trailing node machines/suppliers = machine manufacturers/fabs begin to compete on price, driving down margins

[alephnerd → ethbr1]

^^^ this.

A good example of this principle is the diffusion of analog chip and memory chip fabrication in the 1990s to early 2010s (US/TW/JP/SK in 1980s-90s to MY/SG/PH in the 90s to CN in the 2000s).

The ongoing diffusion of specialized DUVL processes like 20nm, 28nm, and 40nm is another great example (US in the 2000s to TW/SK in the 2010s to CN in the late 2010s/early 2020s).

Nowadays companies like PSMC are selling the entire end-to-end Fab IP for 28nm/40nm processes to companies in JP, IN, ID, US, etc, further diffusing the know how.