A Potential New Rival Wants to Undercut TSMC. Here's What Investors Need to Know.
Yahoo Finance ·
Throughout the massive growth of artificial intelligence and the infrastructure that powers it, Taiwan Semiconductor Manufacturing ( TSM +0.12% ) 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. 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. Can Rapidus really pose a threat to TSMC’s dominance? I don’t think so, and here’s why.
DYAX Investor Sentiment
Bullish (Long) 58% · Bearish (Short) 42%
271 participants
Related News
- Key deals this week: MGM, PERF, VRTX, and more
- SK Hynix's Nasdaq Debut Just Became the Largest U.S. Listing by a Foreign Company
- Coca-Cola Is Crushing the S&P 500 and Nasdaq-100. But There's an Even Better Reason to Buy the Stock in July.
- The New Villian in Tech
- Bulls vs. Bears: SK Hynix jolts analysts amid record-setting IPO
- Archer Aviation Faces Growing Headwinds: Is It Time to Sell?