Apple’s M3 Chip Demand Faces Downward Adjustment

Recent reports highlight a drop in Apple’s M3 chip demand, which may impact multiple sectors. Launched in November, the M3 and M3 Pro chips are seeing weaker demand than expected. Experts attribute this decline to weak consumer spending and a delayed AI laptop boom. This reduction in Apple’s M3 chip demand could have significant effects on the supply chain, including carrier boards and wafer foundries.

Weak Consumer Spending and AI Laptop Delay

Analysts believe that two factors are driving the demand reduction: decreased consumer purchasing power and the delayed AI laptop surge. The global economic downturn has led to lower consumer spending, which affects the demand for high-end laptops. Furthermore, AI laptops have not achieved the explosive growth anticipated, due to technology immaturity and high prices.

AMD’s Outlook and Market Uncertainty

AMD has shared a cautious outlook, revealing that market demand is not as optimistic as expected. The company stated that a strong recovery is uncertain. As one of the largest chip makers, AMD’s cautious tone adds more uncertainty to the market.

TSMC’s Forecast and Seasonal Fluctuations

TSMC has not commented on specific customer demand but acknowledged seasonal factors affecting its first-quarter performance. The company expects financial fluctuations and is preparing for the impact of reduced demand. Seasonal adjustments mainly affect consumer products like PCs and laptops, especially after the peak consumption period in Europe and the U.S.

Challenges in the M3/M3 Pro Market

The supply chain also noted that older MacBook models are undergoing inventory adjustments, contributing to lower shipments. The demand for laptops in the first half of the year remains uncertain. Additionally, the M3 and M3 Pro chips have seen reduced specifications, and the upgrades no longer provide strong incentives for customers. As one of TSMC’s largest customers, Apple’s reduced demand will affect the 3nm production rate.