Taiwan Semiconductor Manufacturing Company (TSMC) will be the exclusive supplier of Apple's next-generation A10 processors with volume production to kick off starting March 2016, Chinese-language Commercial Times reported. TSMC will offer its in-house developed backend integrated fan-out (InFO) wafer-level packaging for the production of the A10 chips, which will be built using the foundry's 16nm FinFET process technology, said the report, which cited unspecified Apple suppliers as its source. The A10 will be featured in the iPhone 7 series slated for launch during the third and fourth quarters of 2016.

This would represent a rejection for Samsung and Globalfoundries ? its partner in 14nm FinFET manufacturing. Samsung is thought to have a 50 percent share of production of the current processor, the A9 which is shipping in the recently launched iPhone 6 and iPhone 6 Plus. It would also be a bounce back into Apple's favor for TSMC.

In addition, TSMC with its 16nm process has obtained half of Apple's total A9 chip orders, which power the recently announced iPhone 6s and 6s Plus.