Yeah but much larger(16-12nm) and much less profitable nodes than what Taiwan, the US or even Japan and China have now.

> I'm just saying the idea you can't be successful if you make cruder, older resolution chips is probably wrong

Define success. Smallest nodes are bringing in the most profits and every country prefers more profits versus less profits, especially Europe given it's budget deficits and welfare spending.

Larger nodes that aren't very profitable are good for national security but Russia and even North Korea are proof you don't need much domestic semiconductor industry to completely terrorize neighboring countries and level entire cities. WW1-style artillery shells and rifle rounds will do just fine.