What it is
A process node, also known as a technology node, is a semiconductor manufacturing term that traditionally referred to the physical gate length of a transistor in nanometers. While the numerical value no longer directly corresponds to a specific physical dimension, it serves as a generational indicator of a chip's manufacturing technology. Smaller process nodes typically mean more transistors can be packed onto a chip, leading to higher performance and lower power consumption.
Process nodes are a key competitive differentiator among semiconductor foundries and integrated device manufacturers. Advancements in nodes, such as moving from 7nm to 5nm or 3nm, are major news in the tech industry, signaling improvements in chip performance for CPUs, GPUs, and AI accelerators. The cost and complexity of developing smaller nodes are immense, influencing global competition and government subsidies like those in the CHIPS Act.
Why it matters
Smaller process nodes lead to faster, more power-efficient chips, directly impacting the performance of your devices and the pace of innovation in technology.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice