The prediction of chatter vibration is influenced by many known complex phenomena, still the predictions can be uncertain. We present a new effect which can significantly change the stability properties of cutting processes. It is shown that the microscopic environment of the chip formation can have large effect on the macroscopic properties. In this work, a combined model of the surface regeneration effect and the chip formation is used to predict the stability in turning processes. In the chip segmentation sub-model, the primary shear zone is described with the corresponding material model along layers together with the thermodynamical behaviour. The surface regeneration is modelled by the timedelayed differential equation. Numerical simulations show, that the time scale of chip segmentation model is significantly smaller than the time scale of the turning process, therefore, averaging methods can be used. Due to the non-linear effects, the chip segmentation can decrease the average shear force leading to decreased cutting coefficients. The proper linearization of the equation of motion leads to an improved description of the cutting coefficients. It is shown that the chip segmentation may significantly increase the stable domains in the stability charts, furthermore, with selecting proper parameters, unbounded stability domains could be reached. Keywords chip formation • chatter • turning • delay The research leading to these results has received funding from the European Research Council under the European Union's Seventh Framework Programme (FP7/2007-2013) ERC Advanced grant agreement №340889.