Japanese chipmaker Rapidus to offer lower wafer pricing than TSMC — 2nm class silicon to be priced around $20,000 on 2027 launch
Japanese chipmaker Rapidus will try to lure customers away from TSMC not only by offering a different kind of service, but also by offering its manufacturing services at lower prices, chief executive Atsuyoshi Koike announced this week. The company's plan to rival TSMC in terms of pricing appears on the surface as a risky move, as the company moves to develop leading-edge process technologies.
At present, Rapidus is looking at charging 3 million - 3.5 million ($18,550 - $21,635) per wafer processed using its 2nm-class fabrication process, which is significantly below TSMC's rumored quote of around $30,000 per N2 wafer, and is comparable to what Samsung is rumored to offer with its SF2 manufacturing technology, set at $20,000 per-wafer. Actual prices will depend on exchange rates, though Rapidus' general idea of offering significantly lower quotes than TSMC is immediately apparent.
Rapidus plans to start high-volume manufacturing (HVM) using its 2nm-class fabrication technology by the second half of 2027. The ramp of a new fab will take some time, so expect meaningful volumes from Rapidus to only be produced in 2028, when TSMC's N2 will no longer be its leading-edge node.
By the time Rapidus starts HVM at its IIM-1 in 2027, TSMC will have ramped production of chips using its performance-enhanced N2P manufacturing node, and the company will also absorb all the yield learning with gate-all-around the company will have with its N2 present at five fab modules. Furthermore, by the time Rapidus reaches meaningful volumes at IIM-1 in 2028, TSMC will have ramped up production using its advanced A16 fabrication process with Super Power Rail backside power delivery as well as a 3rd-generation 2nm-class node named N2X.
In addition to the vast 2nm-capable capacity and process maturity that should be kept in mind when comparing Rapidus with TSMC, there is another factor to consider. One of TSMC's major advantages over its rivals is its Open Innovation Platform (OIP) ecosystem, which includes comprehensive electronic design automation tools, silicon-proven IPs, even for the latest nodes, a host of contract chip designers, and advanced packaging services not only from TSMC but also from its partners. For now, neither Rapidus nor Intel and Samsung Foundry can offer anything close to TSMC's OIP.
Given the advantages that TSMC will likely have over competitors with its 2nm-class fabrication technologies in 2028, lower pricing may be among the few ways to compete against the world's largest foundry. Rapidus' strategy of offering lower quotes while operating a single fab does not seem like the best way of earning money, but perhaps a certain way to lose it.
However, Rapidus may have another ace up its sleeve with single wafer processing across all process steps. The approach will greatly speed up the production cycle, which will be its indisputable advantage over other chipmakers, albeit at the cost of tool usage efficiency. Will lower quotes and shorter production cycles be enough for Rapidus to win customers from TSMC? Only time will tell.
Rapidus is reportedly negotiating with more than 60 potential customers, mainly overseas companies, which demonstrates the company's ambitions to become a viable rival to the global leader TSMC as well as contract chipmakers Intel Foundry and Samsung Foundry.