Process node (N3, N2, 18A)
A named manufacturing generation, such as TSMC's N3 or N2 or Intel's 18A; the label is a branding name, not a measured feature size.
A process node is a generation of chip manufacturing technology. Names such as N3, N2 and Intel 18A are marketing labels. They no longer correspond to a specific gate length or feature dimension, and each foundry uses its own naming scheme. To compare nodes, use published density, performance-per-watt and yield data rather than the name alone.
Traders care because the most advanced node determines which foundry wins the leading AI and smartphone chip orders, and volume timing affects revenue and margins. Each generation costs more to build, and new nodes usually take time to reach high yield. Delays in ramp schedules can shift revenue from one quarter to the next.
Worked example (illustrative numbers, not real data): a wafer costs 20,000 dollars on an older node and 30,000 on a new one. The older node yields 100 good dies per wafer and the new node yields 120. Cost per good die is 200 dollars on the older node and 250 on the new one, so the newer node is more expensive per die despite the higher yield.