Chip morphology and segmentation play a predominant role in determining the machinability and tool wear during the machining of SiC particulates reinforced Al matrix composites. In this paper, a 2D coupled thermo-mechanical finite element model was used for simulating the segmented chip formation at different cutting conditions. The generation of segmentation is achieved by element erase and the shear failure, as well as the continuous adaptive remeshing technical. The results show that the chip is often discontinuous at lower cutting speeds, and with the increasing of the cutting speed, the chip becomes serrated. Fundamental observations from the simulations are concluded and a guideline for further research is proposed.