In a new report by AppleInsider, TSMC is noted to take full control of the iPhone 7’s A10 chip. This news comes from HSBC analyst Steven Pelayo and Lionel Lin, who reported this information to AppleInsider in a letter to investors.

In addition, the new report notes that 60-70% of A9 chips will be directed towards Samsung, and 30-40% towards TSMC. The report also notes that Apple is TSMC’s first customer to use its InFO packaging in mass production. The technology allows the chips to be stacked on top of each other and built directly into a circuit board, instead of being built onto a substrate first, this would reduce the weight and thickness of the device.

AppleInsider also notes that the InFO deal could bring in over $300 million to TSMC’s 2016 sales, reaching $1 billion in 2017. The source estimated that the company could get anywhere between $2.2 billion and $2.5 billion in revenue from A10 production.

In addition, TSMC is predicted to make over $4.6 billion in total from Apple orders next year, which will be up from $3.7 billion in 2015.

Lastly, the report notes that…

“Apple is expected to make next year’s iPhones even thinner, between 6.0 and 6.5 millimeters thick, putting them in line with the iPod touch and iPad Air 2. In fact, it’s even been rumored that Apple might ditch the 3.5mm headphone jack and ask people to use Bluetooth or Lightning accessories instead.”

With that said, we could see a much slimmer and lighter iPhone 7, with components like the A10 chip manufactured by TSMC, if this is true.

Source info: AppleInsider

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