A Potential New Rival Wants to Undercut TSMC. Here's What Investors Need to Know.
Rapidus hopes to mass-produce 2 nm chips in 2027.
Overview
Throughout the massive growth of artificial intelligence and the infrastructure that powers it, Taiwan Semiconductor Manufacturing (NYSE:TSM) has been a consistent winner. TSMC, as it’s known, is the world’s largest chip foundry, producing advanced semiconductors for Nvidia, Advanced Micro Devices, Broadcom, and many others.
TSMC holds a dominant 73% market share in the global foundry market, with second-place Samsung at only 7%. But a Japanese company, Rapidus, is taking aim at TSMC, with plans to mass-produce advanced 2 nm chips while undercutting TSMC on price.
Details
TSMC started producing 2 nm chips this year, and they’re reportedly priced at $30,000 per wafer. Rapidus, which is reportedly in talks with more than 60 companies, would reportedly price its 2 nm process at about $21,000 per wafer, but the company doesn’t plan to enter production until 2027.
Source
Originally published at www.fool.com.