Apple partner TSMC is said to start making chips for new iPhones

Apple Inc. manufacturing partner Taiwan Semiconductor Manufacturing Co. has started mass production of next-generation processors for new iPhones launching later this year, according to people familiar with the matter.

The processor, likely to be called the A12 chip, will use a 7-nanometer design that can be smaller, faster and more efficient than the 10-nanometer chips in current Apple devices like the iPhone 8 and iPhone X, the people said. They asked not to be identified discussing private plans. Apple and TSMC spokeswomen declined to comment.

More-capable chips help smartphones run apps faster and last longer before having to be recharged, key advantages in a competitive industry that’s struggling to grow.

In April, TSMC, the world’s largest contract chipmaker, said it started mass-producing 7-nanometer processors, but didn’t disclose it was building them for a specific partner.

Apple would be one of the first phone makers to use the new chip technology in consumer devices, but it isn’t the only one. Samsung Electronics Co., Apple’s biggest competitor, is working on adding these components to its new phones, and said on Tuesday it will start churning out processors using the technique this year.