Reducing transistor size yields a quadratic increase in transistor density, reducing cost per chip. [1] Chips with smaller transistors use less power. [2] The

Reducing transistor size yields a quadratic increase in transistor density, reducing cost per chip. [1] Chips with smaller transistors use less power. [2] Therefore foundries with the smallest transistors get more orders than competitors. They use the revenue to develop the next generation of tech. The revenues are huge. For example, TSMC earned USD 35,000,000,000 in revenue in 2019 [3, 4]. Starting a new company to compete with TSMC would require possibly the largest investment in history. [1] https://www.icknowledge.com/news/Technology%20and%20Cost%20Trends%20at%20Advanced%20Nodes%20-%20Revised.pdf https://www.icknowledge.com/news/Technology%20and%20Cost%20T... [2] Section 2.5 Power - https://www.doc.ic.ac.uk/~wl/teachlocal/cuscomp/notes/chapter2.pdf https://www.doc.ic.ac.uk/~wl/teachlocal/cuscomp/notes/chapte... [3] TSMC Annual Report 2019 page 91 - https://www.tsmc.com/download/ir/annualReports/2019/english/pdf/e_all.pdf https://www.tsmc.com/download/ir/annualReports/2019/english/... [4] https://www.xe.com/currency/twd-taiwan-new-dollar https://www.xe.com/currency/twd-taiwan-new-dollar