Rapidus challenges TSMC with lower 2nm wafer pricing
Rapidus reportedly aims to undercut TSMC with its 2nm wafer prices
Rapidus is aiming to challenge TSMC with its new 2nm lithography node. The new node will enter mass production in 2027, and will reportedly undercut TSMC with lower wafer prices. With this tactic, Rapidus aims to gain a foothold within the leading edge foundry market.
Rapidus is reportedly in talks with over 60 companies, most of which are foreign (non-Japanese) companies. In 2029, Rapidus aims to release a newer 1.4nm lithography node, bringing Japan back to the forefront of the semiconductor market.
According to a report from Nikkei, Rapidus aims to charge ¥3 million to ¥3.5 million per wafer. This translates to around $20,000 per wafer. This is much lower than TSMC’s rumoured 2nm wafer prices.
Nikkei, citing Rapidus CEO Atsuyoshi Koike, reports that the company aims to “at least match, or slightly undercut” TSMC’s pricing for its products. Rapidus is targeting a reference price of ¥3 million to ¥3.5 million per wafer, although the final price could fluctuate depending on factors such as exchange rates, the report adds. At current rates, the range translates to approximately US$18,460 to US$21,540 per wafer.
Rapidus responds
Rapidus has officially commented on media reports of its wafer pricing. The company has stated that wafer pricing can very significantly based on the products ordered. Exchance rate fluctiations can also impact pricing. In other words, Rapidus has not denied these pricing claims. However, they have clarified that prices will be specific to customers and their products.
Yesterday, some media outlets reported on the estimated price per wafer for Rapidus during mass production, based on remarks made by our President and CEO, Atsuyoshi Koike, at a seminar. However, since semiconductor prices vary significantly depending on the specifications of the products ordered by semiconductor design companies and are subject to fluctuations due to factors such as exchange rates, this price does not necessarily reflect the actual selling price.
– Rapidus
It should be noted that wafer pricing isn’t the only important factor in chip production. Silicon performance matters, as do silicon yields. If chips aren’t performant, they won’t be as valuable. Furthermore, if chip yields are low, it won’t matter how cheap the silicon wafers are. Cost per functional chip matters, not the cost per wafer.
If Rapidus’ 2nm node is performant and has high silicon yields, the company could become a challenger for TSMC. That said, it remains to be seen how successful Rapidus will be. After all, they are fairly new to the market (established in 2022), and this is their first major lithography node.
You can join the discussion on Rapidus’ 2nm technology on the OC3D Forums.
