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Apple's 3nm chip demand to drop in 2024: Report
Apple's 3nm chipsets, which are just beginning to hit the market, with the Apple A17 Pro being the first, are expected to see a decline in demand in 2024.
San Francisco: Apple's 3nm chipsets, which are just beginning to hit the market, with the Apple A17 Pro being the first, are expected to see a decline in demand in 2024.
According to Apple analyst Ming-Chi Kuo, demand for this emerging technology may be weak next year, prompting major players to take a step back.
Apple is expected to reduce orders for 3nm chips next year, forcing the Netherlands-based semiconductor company ASML to reduce EUV equipment shipment by 20 to 30 per cent.
"The sharp decline is attributed to the end of work-from-home (WFH) demand and diminishing user appeal for the new specifications (Apple Silicon and Mini-LED). Looking ahead to 2024, Apple’s 3nm demand is negatively impacted by the lack of growth drivers for MacBook and iPad," Kuo wrote in a blog on Medium.
In 2023, Apple's MacBook and iPad shipments declined significantly by approximately 30 per cent and 22 per cent to 17 million and 48 million units, respectively.
Moreover, the report suggested that chipmaker Qualcomm's 3nm demand for 2024 is also expected to be lower due to Huawei's decision to stop sourcing chips from Qualcomm, as well as the higher-than-anticipated penetration rate of Exynos 2400 in Samsung smartphones.
Huawei has recently made significant advances in chip development by outfitting its flagship Mate 60 and Mate 60 Pro with its own 7nm Kirin 9000S 5G processor. Previously, the Chinese company relied on Qualcomm's 4G flagship processors.
In addition, Samsung, which used Qualcomm's Snapdragon 8 Gen 2 chips in all Galaxy S23 models this year, plans to significantly reduce its orders.
The report further mentioned that Samsung, Micron, and SK Hynix aren't expected to launch memory expansion plans until 2025-2027.
