According to a recent report, Apple is reducing its demand for 3nm chips set to debut in 2024. The tech giant is not alone in this action; Qualcomm, another major player in the semiconductor industry, is also scaling down its production plans for the same year. This twin retreat has prompted Dutch company ASML, a leading supplier of extreme ultraviolet (EUV) equipment, to cut its EUV equipment shipment forecasts for 2024 by approximately 20-30%.
The move by Apple and Qualcomm is notable, considering the ever-increasing need for more powerful and efficient chipsets in smartphones, laptops, and other connected devices. It raises questions about possible shifts in strategy, technology roadmaps, or even broader industry trends that might be informing this pullback.
ASML’s shipment cut further emphasizes the ripple effect that decisions from big players like Apple and Qualcomm can have on the semiconductor supply chain. EUV equipment is crucial for the production of smaller and more efficient chips, and a reduction in its shipment could have broader implications for the industry.
The report does not specify the reasons behind Apple and Qualcomm’s reduced demand for 3nm chips. However, given the strategic importance of semiconductor technology in their product portfolios, any scale-back is noteworthy.
It’s worth mentioning that both companies have a history of jockeying for advantage in the highly competitive chip market. A pullback in orders for advanced chips could indicate various scenarios, such as a more cautious market outlook, shifts in consumer demand, or even developments in alternative technologies.
This news is likely to attract the attention of not just industry insiders but also investors and consumers who are keenly watching how technology trends unfold. The reductions could potentially influence product timelines and performance metrics, although exactly how remains to be seen.
While we await further clarification from Apple, Qualcomm, and ASML, this development certainly adds another layer of complexity to the already intricate world of semiconductors and connected devices.
