It has been rumored for quite sometime that Apple is working with TSMC for their next generation A6 chip that will be made using the new 28nm process technology. And now Digitimes is reporting that Apple has partnered up with TSMC not only for next generation A6 chip made on 28nm process technology, but also for future generations of A series processors made on 20nm process technology. Ingrid Lee posted on Digitimes:

Apple has recently signed a foundry partnership agreement with Taiwan Semiconductor Manufacturing Company (TSMC), industry sources have claimed. Under the terms of the agreement, TSMC will apply its 28nm and 20nm process technologies to produce Apple's next-generation CPUs, according to the sources.

TSMC is believed to have quietly secured Apple's contract, and even succeeded in extending the deal to cover the manufacture for the A6's successor, the sources said.

Apple and TSMC, however, have not yet talked about backend manufacturing (packaging and testing of the chip), the sources said. It is likely that Apple will have TSMC and the other dedicated packaging and testing house split the orders due to TSMC's limited available capacity for backend services, the sources speculated.

Till now Apple designed chips A4 and A5 have been manufactured by Samsung, but with legal problems going on between the two companies Apple is looking to decrease their dependence on Samsung for electronic components. And TSMC deal would be their first major step in that direction.