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New Chip Rival Challenges TSMC's Reign
14 Nov
Summary
- Rapidus plans to mass-produce 2nm chips by late 2027 or early 2028.
- The Japanese startup aims to undercut TSMC's pricing for advanced chips.
- Rapidus faces technical challenges and potential delays in production.
Taiwan Semiconductor Manufacturing (TSMC) has long led the advanced chipmaking industry. However, a Japanese startup named Rapidus, supported by the government and IBM, aims to compete in the third-party foundry market. Rapidus has targeted late 2027 or early 2028 for the mass production of 2-nanometer chips, with its CEO recently reaffirming this goal.
The company also intends to offer competitive pricing, with indications of charging approximately $21,000 per wafer for its 2nm process, significantly less than TSMC's estimated $30,000. Rapidus has commenced trial production in Hokkaido, Japan, and has engaged with numerous potential clients. The Japanese government has invested billions to bolster its domestic semiconductor industry.
Despite these efforts, Rapidus faces significant challenges. Reports suggest the company is struggling with crucial technical milestones, including the successful production of static random access memory cells. Some news outlets indicate a potential one-year delay, although Rapidus maintains its original schedule. Success will also depend on reliable production and profitability, not just lower prices.
TSMC, conversely, is already manufacturing 2nm chips and holds a substantial 73% share of the global foundry market. The company reported substantial revenue growth, with its 2nm technology already contributing to its wafer revenue, demonstrating its ongoing advancement and market leadership.
