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Chip For The Next-Gen iPhone Reportedly Being Preppared

An Asia-based report claims that Apple's next-gen iPhone chip will get "taped out" this month in preparation for pilot manufacturing this summer. 

The same source suggests that the chip is expected to land in future iPhone and iPads is being prepared by contract chip manufacturer TSMC.

Taiwan Semiconductor Manufacturing Company, or TSMC will accomplish one of the final steps before the manufacturing of the next iPhone starts, and will introduce an A7 chip this month. 

The pilot production by TSMC will start this summer, while the commercial production will follow by the first quarter of 2014. 

TSMC's future 20-nanometer manufacturing process will be used for A7. However this is not expected to be ready until the next year. According to the sources who claim to be familiar with TSMC's plans, Apple is designing products now based on the TSMC's 20-nanometer process and expect TSMC's Apple chip production to begin in 2014.

With Samsung being been the exclusive manufacturer of Apple's A series processors, including the current A6 chip , to date, Apple has decided to diversify beyond Korean manufacturer and may also include Intel for making chips for Apple on its 14-nanometer process, possibly in 2014.