Apple and its manufacturing partner are readying the next-generation processor expected to land in future iPhones and iPads.
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.
Those sources also expect TSMC's Apple chip production to begin in 2014.
To date, Samsung has been the exclusive manufacturer of Apple's A series processors -- including the current A6 chip -- for the iPhone and iPad. But Apple has been looking to diversify beyond Samsung.
Down the road, that diversification could also include Intel. One school of thought has Intel making chips for Apple on its 14-nanometer process, possibly in 2014.
Another theory is that Apple looks to limited production from Intel on its current 22-nanometer process.
All the latest Apple news, featuring developments on the iPhone, iPad, Macbooks, OS X and much more.
May 25Qualcomm wants Apple manufacturers to pay up
May 24Apple gives free app development curriculum to schools
May 24iPhone 8 dummy mock-up brings rumors to life
May 24iPad Pro 2: Everything we know so far about the next edition of Apple's iconic tablet