It's not just the cost of a GPS chip, it's the custom turbofan engine, the other guidance system components, active radar (in some units) and a guarantee that you can keep the unit in a tube for years and ensure that it's gonna work when you need it.

Plus low volume production volums and long times needed to manufacture it.

Could it be cheaper? Yeah I'm sure. But the US Gov is willing to pay for em so why drop the price?

A tomahawk has a good INS, which is still expensive, and it has to be able to sit for years in a tube getting banged around with the waves, and launch on a moments notice.

That’s not to say that it should cost 2.5 million, but Ukraine doesn’t need storability and durability because I think they pretty much get driven from the factory to the launch site in a matter of days.

What seems to be happening is that Ukraine, which has a rocket industry from the Soviet era, is building such missiles, and, through a quiet deal with Taiwan, the electronics is provided.[1] This is not a secret but nobody talks about numbers.

[1] https://ipdefenseforum.com/2026/01/taiwan-looks-to-partner-w...