A process for debundling a carbon fiber tow into dispersed chopped carbon fibers suitable for usage in molding composition formulations is provided. A carbon fiber tow is fed into a die having fluid flow openings, through which a fluid impinges upon the side of the tow to expand the tow cross sectional area. The expanded cross sectional area tow extends from the die into the path of a conventional fiber chopping apparatus to form chopped carbon fibers, or through contacting tines of a mechanical debundler. Through adjustment of the relative position of fluid flow openings relative to a die bore through which fiber tow passes, the nature of the fluid impinging on the tow, the shape of the bore, in combinations thereof, an improved chopped carbon fiber dispersion is achieved. The chopped carbon fiber obtained is then available to be dispersed in molding composition formulations prior to formulation cure.