Earlier quoted context omitted.
A ~20 year old process... that'd be 250nm or 180nm, which is Just Fine for many microcontrollers, if not the new 600mhz-1ghz Cortex M7's...
If the 180nm design is good enough, and migrated it to a new process, you'd get more chips per wafer. Hence never competitive. "It's open!" doesn't make a business decide to buy a million and put them in a product - cost, features, availability, support do. Nobody cares about "open silicon" - it's only spouted by people who don't understand actual electronics, or if they do, they certainly don't understand the econom…
From a state perspective, being reliant on other countries for your electronic may seem like such a threat to your ability to remain sovereign that it's worth developing your own, even if you are generations behind the latest and greatest.