In a recent development, renowned analyst Ming-Chi Kuo has reported that Apple is set to reduce its orders for the 3nm chipset in 2024. This decision is expected to have significant implications for the smartphone chipset market and the broader tech industry.
Key Highlights:
- Apple is reducing its demand for 3nm chips.
- Qualcomm is also scaling back its production.
- Dutch ASML, a major equipment supplier, is expected to cut its EUV equipment shipment for 2024 by 20-30%.
- The semiconductor business might face a slump extending to Q2 2024.
- Apple’s MacBook and iPad shipments have seen a decline, with a 30% decrease in laptops and a 22% decrease in iPads.
- Qualcomm’s 3nm chip demand is affected by Huawei’s decision and the expected rise of Samsung’s Exynos 2400 chips.
The smartphone chipset market’s future appears uncertain, as indicated by Kuo’s analysis. Apple’s decision to lower its demand for 3nm chips is not an isolated event. Qualcomm, another tech giant, is also retreating from its production targets. This has prompted Dutch ASML, a leading equipment supplier to chipset foundries globally, to anticipate a 20-30% reduction in its EUV equipment shipments for the upcoming year.
Factors Influencing the Decision:
Several factors are contributing to this shift in the market. Apple has experienced a decreasing demand for its MacBook and iPad devices. Despite the introduction of new chips and mini LED screens, consumers are not as eager to upgrade to the latest devices. This reluctance has resulted in a 30% decline in MacBook shipments and a 22% drop in iPad shipments.
Furthermore, Qualcomm’s interest in 3nm chips is waning, partly due to Huawei’s decision to cease sourcing chips from the San Diego-based company. Additionally, the anticipated rise in the penetration of Samsung’s Exynos 2400 chips is affecting Qualcomm’s overall forecast.
The ramifications of these decisions extend beyond Apple and Qualcomm. The semiconductor business, which many believed would recover in the latter half of this year, might now face challenges extending into the second quarter of 2024. This potential slump is concerning for industry stakeholders and investors alike.
Conclusion:
The tech industry is no stranger to fluctuations and shifts in demand. However, the recent revelations about Apple’s reduced demand for 3nm chipsets in 2024, coupled with similar moves by other tech giants, highlight a potentially challenging period for the semiconductor business. As companies recalibrate their strategies and production targets, the broader implications for the industry remain to be seen.
