Question

Difficulty: MediumDrawing Logical Inferences from Passage Premises

Passage:
In recent years, semiconductor foundries have increasingly relied on extreme ultraviolet (EUV) lithography to print sub-seven-nanometer circuit patterns onto silicon wafers. However, EUV systems require mirrors coated with dozens of alternating layers of molybdenum and silicon, manufactured to atomic-level precision, to reflect light at a wavelength of 13.5 nanometers. Because these mirrors degrade quickly under intense ultraviolet exposure, foundries must replace them far more frequently than the optics used in older deep ultraviolet (DUV) systems. Despite these frequent replacements and the soaring operational costs associated with maintaining ultra-clean vacuum environments for EUV equipment, top-tier foundries have consistently reported higher net profit margins on EUV-fabricated chip batches than on DUV-fabricated batches of equivalent volume. Economists attribute this phenomenon to the significantly higher transistor density achieved via EUV lithography, which enables semiconductor designers to cram more processing power into smaller dies, allowing microchip vendors to command premium pricing that more than offsets the elevated capital and maintenance expenses borne by the foundries.

Statement: Based on the passage, the higher profit margins of EUV-fabricated chip batches depend on premium market pricing enabled by greater transistor density rather than lower maintenance overhead.

Answer: Answer

Answer

True. The passage premises establish that EUV systems incur higher maintenance costs, but achieve superior net profit margins because greater transistor density allows vendors to charge premium prices that exceed those additional operational costs.
The passage explicitly states that EUV equipment involves higher capital and maintenance costs (such as frequent mirror replacements) compared to DUV systems. It directly attributes the higher profit margins of EUV chips to the premium prices enabled by higher transistor density, which offsets these elevated costs. Therefore, the statement logically follows from the premises.

Step-by-Step Solution

1
Identify the passage premises regarding EUV maintenance costs and profitability.
EUV systems require more frequent mirror replacements and higher operational expenses than DUV systems, yet yield higher net profit margins.
Establishing the contrast between maintenance costs and net margins is required to evaluate what drives profitability.
2
Examine the logical mechanism given for why EUV batches are more profitable.
Economists explain that higher transistor density permits smaller dies with more processing power, commanding premium pricing that more than offsets the elevated maintenance expenses.
This establishes that premium pricing from density, not low maintenance overhead, is the cause of higher margins.
3
Assess the truth value of the statement against the synthesized premises.
The statement accurately reflects that higher profit margins depend on premium pricing from transistor density rather than lower maintenance overhead.
Direct logical alignment with the passage premises confirms the statement is True.

Key Concept

Drawing Logical Inferences from Passage Premises
Rate this question