The astronomical cost of advancing past leading-edge process nodes is reshaping semiconductor manufacturing topology. Extreme ultraviolet (EUV) lithography equipment expense has effectively priced smaller foundries out of top-tier logic fabrication.
Specialization as a Defensive Strategy
Rather than competing on transistor density, secondary foundries are repurposing legacy capacity for power management ICs, analog sensors, and radio frequency chips. This strategic pivot ensures high capacity utilization while insulating mid-tier producers from the capital intensity required for advanced microprocessors.