An industry analyst reveals that Apple’s desire for next-gen 3nm chips, which are projected to be adopted in their devices launching in 2024, will not meet the market’s high expectations. In an announcement earlier this month, the tech giant from Cupertino unveiled its inaugural smartphone equipped with a 3nm Chip. However, TF Securities analyst Ming-Chi Kuo suggests that due to a decline in the shipment of iPads and MacBooks in 2023, the company could potentially lower its demand for the new chips in the following year. Furthermore, Ming-Chi Kuo also predicts that Qualcomm, another player in the tech industry, is also planning to decrease its demand for 3nm chips in the upcoming year.
As disclosed by Kuo in a Medium blog post, iPad shipments dropped by 22 percent to 48 million units this year, while MacBook shipments plunged by roughly 30 percent to 17 million units. The analyst claims that this decrease in shipments can be attributed to the conclusion of work from home (WFH) demands, accompanied by a diminishing interest in high-end specifications.
Consequently, Apple’s demand for next-gen 3nm chips anticipated for the year 2024 will not meet expectations, as stated by Kuo. Meanwhile, the analyst also forecasts a reduction in ASML’s (formerly Advanced Semiconductor Materials Lithography) EUV equipment shipments for next year, potentially up to 30 percent, due to diminished demand from Apple, Qualcomm, and Samsung.
Kuo additionally predicts that both Qualcomm and Samsung will also decrease their demand for 3nm chips in 2024. The Snapdragon chip manufacturer is expected to be impacted by two smartphone manufacturers opting to utilize their in-house chips, namely Huawei (Kirin) and Samsung (Exynos). Recent reports suggest that Samsung’s flagship phones for 2024 will integrate the Exynos 2400 chipset in markets outside the US.
In a recent blog post, Kuo refuted claims that the overheating issues affecting Apple’s iPhone 15 Pro models were caused by TSMC’s advanced 3nm chip manufacturing technology. Instead, the analyst attributed the overheating problems to Apple’s modifications to the thermal design of the iPhone 15 Pro and iPhone 15 Pro Max, which introduced a titanium frame distinct from their predecessors.
