What it is
Legacy chips, also known as mature-node chips, are semiconductor devices produced using older manufacturing technologies, generally defined as process nodes of 28 nanometers or larger. Unlike advanced chips, which focus on cutting-edge performance, legacy chips prioritize cost-effectiveness and reliability for less demanding applications. They represent a significant portion of global chip production by volume.
These chips are crucial for a vast array of everyday devices, including automotive chips, industrial controls, home appliances, and basic consumer electronics. While less glamorous than AI accelerators, a shortage of legacy chips can cripple industries, as seen during the recent chip shortage that affected car production. Geopolitical tensions sometimes target legacy chip production capacity due to their widespread economic importance.
Why it matters
Legacy chips are essential for countless everyday products; shortages or supply chain disruptions can significantly impact manufacturing and prices in many sectors.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice