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TSMC has begun mass production of a new generation of processors for a new iPhone to be released later this year, according to people familiar with the matter.

The processor, which is likely to be called the A12 chip, has a seven-nanometer design, making it smaller, faster and more efficient than the 10-nanometer chips currently used in the iPhone 8 and iPhone X, according to people familiar with the matter.

Spokesmen for apple and TSMC declined to comment.

More powerful chips could help smartphones run faster and last longer. That will be a key advantage in a market where growth is sluggish and competition is fierce.

In April, TSMC, the world's largest contract chipmaker, said it would start producing seven-nanometer processors but did not disclose which partners it would build them for.

Apple will be one of the first handset makers to use the technology in consumer electronics devices, but not the only one. Samsung will also add this component to its new phones. The company said on Tuesday it would start making processors using the technology this year.

Apple also wants to stay ahead of qualcomm's 7-nanometer chip designs. Huawei is also taking market share in China with its phones and homegrown processors.

Apple plans to release at least three new iphones this fall, including a large-screen version of the iPhone X, an upgrade of the existing iPhone X and a lower-priced product with many of the iPhone X's features but an LCD screen.

TSMC plans to spend more than $10bn to expand its production facilities at its hsinchu headquarters, including a research and development centre to develop the latest generation of chip technology. (sina science and technology/book Yu). (the original from the home of SMT BBS, reprint please indicate the source: http://bbs.smthome.net/read-htm-tid-466936.html).