Qualcomm gearing up to produce 4G LTE chips for Apple's next iPhone

Qualcomm is expected to build its 4G LTE chips at Taiwan Semiconductor Manufacturing Company, supply chain sources shared with DigiTimes. Qualcomm will need about 10,000 28-nanometer 12-inch wafers, representing one-third of the 28-nanometer capacity at TSMC, just to produce 4G chips for the next iPhone, the report said.

Also relying on TSMC's 28-nanometer process for the next iPhone will be Broadcom, which is expected to provide Wi-Fi chips to Apple. And OmniVision is also said to be looking to get in on TSMC's 12-inch fabrication process.

The report noted that TSMC's "tight production capacity" for its 28-nanometer process will also have customers Nvidia, Texas Instruments, Altera, Xilinx and others. It's expected that it will be difficult for TSMC to meet market demand for the 28-nanometer process until it can produce 50,000 units a month around the fourth quarter of 2012.

With supply constraints in mind, STMicroelectronics is said to be ramping up output of MEMS devices for Apple's next iPhone. Similarly, NXP Semiconductors and Texas Instruments are reportedly stockpiling inventory of analog integrated circuits to meet Apple's demand.

In March it was said that Apple was in the process of reviewing potential components for the company's next-generation LTE 4G iPhone. Among the parts Apple was expected to utilize by Barclays was Qualcomm's "MDM9615" LTE chip, which supports both voice and data connections on high-speed 4G networks.

Analysts at Barclays also said at the end of May that Apple had "locked down" suppliers of important radio chips for the sixth-generation iPhone. Companies said to have been selected by Apple included Skyworks, Avago Technologies, and TriQuint.