Apple's Next-gen iPhone Chip Being Prepped

TSMC is expected to tape out one of the final steps before manufacturing - Apple's A7 chip

Apple and its manufacturing partner are readying the next-generation processor expected to land in future iPhones and iPads. Taiwan Semiconductor Manufacturing Company, or TSMC, is expected to tape out - one of the final steps before manufacturing - Apple's A7 chip this month, according to a report in Digitimes.

That will set the stage for pilot production by TSMC this summer and commercial production by the first quarter of 2014. The A7 will use TSMC's future 20-nanometer manufacturing process -- which isn't expected to be ready until 2014. Apple, in fact, is designing products now based on the TSMC's 20-nanometer process, according to sources contacted by CNET who are familiar with TSMC's plans.

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