> the net effect is that margins for leading node compress from the increased competition.

That is true in perfectly competetive markets, but I'm skeptical about that idea holding true for high-end chip nodes.

I'm not sure there is enough competition with Intel joining the market alongside TSMC, Samsung, and all the other (currently) minor players in the high-end space. You might see a cartel form instead of a competative market place, which is a setup where the higher margin is protected.

My best guess is the price will remain high, but the compression will happen around process yields. You could successfully argue that is the same as compressing margins, but then what happens after peak yield? Before prices compress, all the other compressable things must first squeeze.