Apple’s Demand for 3nm Chips in 2024: A Closer Look

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Apple's Demand for 3nm Chips in 2024

Apple’s Demand for 3nm Chips in 2024: A Closer Look

Introduction

Apple’s Demand for 3nm Chips in 2024, The technology world is abuzz with excitement as companies race to develop and implement cutting-edge 3nm chips in their devices. Apple, known for its commitment to innovation, unveiled its first smartphone equipped with a 3nm chip earlier this month. However, recent reports suggest that Apple’s demand for these next-generation chips in 2024 may not be as high as initially expected. Let’s delve into the details and explore the factors influencing this shift in demand.

The Market Analyst’s Perspective

Market analyst Ming-Chi Kuo from TF Securities has recently shared insights that have raised eyebrows in the tech industry. Kuo suggests that Apple’s demand for 3nm chips in 2024 could fall below market expectations. This revelation comes as a surprise, given Apple’s reputation for pushing the boundaries of technology in its devices.

The Decline in Shipments

To understand this prediction, we must first examine the decline in shipments for two of Apple’s key products: the iPad and MacBook. According to Kuo, this year has seen a significant decrease in shipments for these devices. iPad shipments dropped by a staggering 22 percent, resulting in 48 million units shipped. Meanwhile, MacBook shipments experienced a decline of approximately 30 percent, with 17 million units shipped.

The Work-from-Home Factor

What led to this sudden drop in shipments for Apple’s iPad and MacBook? Kuo attributes it to the changing landscape of work. The demand for these devices was initially fueled by the work-from-home (WFH) trend, which saw individuals and businesses seeking high-end specifications for remote work setups. However, as the WFH trend subsided and people returned to more traditional work environments, the appeal for these high-end devices diminished.

Implications for Apple’s Demand for 3nm Chips

The decline in iPad and MacBook shipments in 2023 has significant implications for Apple’s demand for 3nm chips in 2024. Kuo’s analysis suggests that the company may reduce its demand for these advanced chips. This reduction is noteworthy, as Apple has been a major player in driving the development and adoption of cutting-edge semiconductor technology.

Qualcomm’s Expected Reduction

Interestingly, it’s not just Apple that is expected to lower its demand for 3nm chips in the coming year. Qualcomm, another tech giant known for its contributions to the mobile industry, is also projected to decrease its demand for these chips. Kuo’s insights suggest that Qualcomm’s decision may be influenced by various factors, including changes in the smartphone market and competition from manufacturers using their own chips.

Impact on ASML

The ramifications of reduced Apple’s Demand for 3nm Chips extend beyond Apple and Qualcomm. ASML, a leading manufacturer of Extreme Ultraviolet (EUV) lithography equipment, is expected to be impacted as well. Kuo predicts that ASML may need to revise its equipment shipment predictions for the next year, potentially reducing them by up to 30 percent. This adjustment reflects the ripple effect of diminished demand from key players in the semiconductor industry.

A Broader Industry Trend

It’s essential to recognize that Apple and Qualcomm are not the only companies expected to reduce their demand for 3nm chips in 2024. Samsung, another tech giant, is also part of this broader trend. The decline in demand for Samsung’s Exynos chips can be attributed to several factors, including the use of proprietary chips by smartphone manufacturers like Huawei and Samsung themselves (in markets outside the US).

Addressing Overheating Concerns

In a related development, Kuo addressed concerns regarding overheating issues in Apple’s iPhone 15 Pro models. Contrary to speculation that these issues were linked to TSMC’s advanced 3nm chip manufacturing technology, Kuo pointed to a market survey that suggests otherwise. Instead, he attributed the overheating problems to Apple’s modifications in the thermal design of the

Apple’s Demand for 3nm Chips in 2024

As we look ahead to 2024, the landscape of Apple’s Demand for 3nm Chips appears to be undergoing significant shifts. Factors such as changing work dynamics, increased competition, and shifts in consumer preferences all play a role in shaping this evolving scenario. While Apple’s decision to potentially reduce its demand for these chips is noteworthy, it’s important to recognize that the tech industry is dynamic, and strategies can change rapidly.

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Conclusion

In conclusion, the tech world’s anticipation for Apple’s Demand for 3nm Chips remains palpable. However, the intricacies of demand and supply, as highlighted by Ming-Chi Kuo’s insights, remind us that even industry giants like Apple and Qualcomm must navigate a complex landscape. As technology continues to advance, adaptability and strategic decision-making will be crucial in shaping the future of semiconductor technology.

 

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