TSMC may be producing the next generation of Apple SoCs

Apple's iPhone models are still a top-selling series around the world despite the recent decline in sales and the Cupertino company continues to make bank on each unit sold due to significant profit margins. Similarly, suppliers benefit from contracts with Apple due to the volume and rate at which new models are produced. TSMC is the third largest semiconductor manufacturer after Intel and Samsung and has purportedly struck a deal with Apple to produce the next SoC for the inevitable 2017 iPhone and even this year's iPhone 7 or iPhone 6x. The rumor stems from the fact that the company recently posted a spike in sales for its Q3 2016 time frame that highly suggests a new contract has been set in stone.

Reasons for the change in supplier could be due to TSMC's higher yield rates and lower costs and to expand upon Apple's sources. Samsung, for example, continues to be one of Apple's largest suppliers and may be providing the rumored OLED panels for future iPhones. Though Apple's A10 SoC has yet to be announced, TSMC's contract could extend further down the line to Apple's A11 SoC series that is expected to be manufactured in a 10 nm FinFET process.

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