The next iPhone iPhone 7 is expected to pack smaller chips in order to be be significantly thinner, lighter, and have more battery capacity than the previous models. The new device will be equipped with an RF (Radio Frequency) chip developed using the fan-out packaging technology, which allow for the development of very thin packages, according to Korean ETNews.

The approach, which has been around for several years, is a wafer-level packaging process that enables ultra-thin, high-density packages.

The Fan Out technology increases number of I/O (Input/Output) terminals within a package by pulling the wiring of I/O terminals ouside the semiconductor chip. The approach allows for the redistribution of the I/Os beyond the chip footprint, enabling packages with profiles at ≤0.4mm. This is a cost effective way to increase the number of I/O terminals within a package and simultaneously decrease the size of a chip.

OSAT businesses that have Fan Out Packaging technology and currently are able to mass-produce related products are StatsChipPac, Nanium and Nepes.

NXP Semiconductor’s 77GHz Radar Sensor for medium and long-distance vehicles has been also manufactured using the Fan Out Packaging technology.

Fan-out packaging has been also used by Intel for its LTE multichip part that measures just 5.32 by 5.04 mm.

TSMC has been talking about its version of fan-out packaging, called integrated fan-out (InFO), for several years, and is one of a the few of companies already in production with fan-out packaging.

However, it is not clear whether TSMC will apply InFO to make Apple’s A10 application processor.

Itis believed that an application processor can be combined with memories and other devices, with a 40% reduction in form factor compared with conventional flip chip packaging.