Earlier quoted context omitted.
By allowing anyone to knock off the chip without paying back the R&D. There's already a huge market of counterfeits and clones coming out of China for most things you can think of. It's even easier without reverse engineering: hand design to a fab, individual or MPW, then package and sell the chips. Very little of the price of chips you buy is the material or packaging costs. It's mostly R&D recoup, marketing, admini…
"Very little of the price of chips you buy is the material or packaging costs." Are you sure about that? How much markup over material costs is there on most chips?
Now, compared to that, the silicon wafer might cost a few grand with packaging (not volume) costing $10-20 a unit. For any OSS project, dare I say most of the cost will be in the first paragraph and recouping it will take significant unit prices. How significant depends on what's being sold and at what volume. A PIC or AVR clone at modest volume will be cheaper than an Oracle T2 clone at low volume. Hope that helps.