TSMC making Apple A8 processor for iPhone 6: Report

Taiwan Semiconductor Manufacturing Co has started producing chips to be used in Apple's next iPhone, reports said Wednesday, as speculation swirls that US firm could be offloading rival Samsung as a supplier.

The world's leading contract microchip maker started producing the A8 Apple's latest of the line of processors tipped to power the expected iPhone 6 last month, the Taipei-based Commercial Times reported, citing supply chain sources.

The reports said TSMC had swept most of the manufacturing orders for logic and power management integrated chips that would be installed on the handset. The Commercial Times forecast the new phone, which will likely have a 4.7-inch screen, to hit shelves early in the third quarter.

TSMC declined to comment on the report, but the firm's shares closed up 2.33 percent at Tw$110.0 Wednesday.

The news has fed rumours that Apple is reducing its reliance for parts on South Korean giant Samsung, its main competitor in the mobile phone market and a bitter rival with which it is contesting several copyright court battles globally.