Apple May Already Be Starting Production on A8 Chip

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Little birdies from Taiwan are carrying rumors that Apple Inc. (NASDAQ:AAPL) may be nearing production of its A8 chip, the successor to its much-lauded A7 chip, which debuted in the iPhone 5S last year. Sources in Asia said Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) will be the main supplier of the chips, CNET reports.

While it’s unclear just how close Apple is to production, some news sources, such as Taiwan TechNews, have reported that TSMC has already started production on the chip, which is expected to be Apple’s next-generation processor for the iPhone.

TechNews Taiwan is also reporting that TSMC will be the sole manufacturer of the A8 chip; Samsung (SSNLF.PK), which was originally supposed to manufacture about 30 percent of the load, has allegedly been dropped by the tech giant due to low yields in its 20 nanometer production process. TSMC was better able to meet Apple’s demands, MacRumors reports.

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