Japanese chipmaker Rapidus is staking out its pitch against industry leader TSMC: undercut them on price. According to Tom's Hardware, Rapidus has disclosed that it plans to sell its most advanced 2nm-class silicon wafers for around $20,000 each when the technology launches in 2027.

The strategy is straightforward. Rather than trying to beat TSMC on manufacturing scale or track record—areas where the Taiwanese giant dominates—Rapidus is positioning itself as the more affordable option. Tom's Hardware reports that offering lower quotes than TSMC is a central piece of the company's strategy, and outlets covering the news, including The Mac Observer, have framed the move as a direct bid to rival TSMC.

Why the focus on 2nm? In chipmaking, smaller "nanometer" numbers roughly correspond to more advanced, denser, and more power-efficient chips—the kind that power cutting-edge smartphones, AI systems, and high-performance computers. Being able to produce 2nm-class silicon at all would put Rapidus in a very small club of leading-edge manufacturers, and doing so at a competitive price could make it an attractive alternative for companies designing next-generation products.

The sources do not detail Rapidus's production capacity, customer commitments, or how its yields might compare to TSMC's—all factors that will ultimately determine whether cheaper pricing translates into real market share.

Why it matters: The most advanced chips are made by only a handful of companies, so a credible, lower-priced challenger to TSMC could reshape who supplies the silicon behind future phones, computers, and AI.