Apple Suspended Production of M2 Chips Due to Falling Demand of Macs

Demand for Apple's latest Macs has seen a downfall since January and the company has seized production of its custom M2 series chips. According to a new report, Macs adhered to lower-than-expected demand which lead the company to delay the production of the M2 series of chips until it regains traction. Scroll down to read more details on the subject.

Apple stopped production of its M2 series chips as Macs saw a decline in sales

The global recession is on the rise which is causing Mac sales to decrease. According to a report shared by The Elec, Apple's MacBook Air, MacBook Pro, and other models saw a decline in demand which resulted in Apple halting the production of its custom M2 chips. The production stoppage that rested through February shows the intensity of the decrease in demand and it will take some time before sales are back to normal.

Taiwan's TSMC did not send 5 nano-process M2 chip wafer workpieces to the outsourced semiconductor package test (OSAT) in January and February, according to the OSAT industry on the 3rd. It is believed that it was because Apple requested to stop production as demand for MacBooks dwindled.

Apple debuted the M2 chip last year at its WWDC event alongside the redesigned MacBook Air. The chip is fabricated on TSMC's 5nm architecture that features enhanced computational and graphical performance coupled with better battery life. We are also expecting the company to announce a new model of the MacBook Air with a bigger 15.5-inch display. However, another rumor also hints that the company is also developing a slightly smaller 13.4-inch OLED MacBook Air.

Apple has resumed the production of the M2 chip but the level is almost half as compared to last year. Apple's demand for M2 chips reveals that the company's revenue year over year has declined by 5 percent. This shows that the demand is lower than some analysts had speculated. Apple was struggling to keep up with the iPhone's demand as well with the ongoing supply chain issues.

The M2 chip was further upgraded with the launch of the new 14-inch and 16-inch MacBook Pro models that housed the M2 Pro and M2 Max chips. Additionally, the company is also expected to reveal its M3 chips based on a 3nm process later this year. Apple will be hosting its WWDC 2023 event on June 5 and it will potentially announce the new hardware as well.

We will keep you guys updated on the latest as soon as further details are available. Share your thoughts with us in the comments.

Written by Ali Salman