ASE taps into Apple supply chain with iPhone 7 fingerprint sensor, Apple Watch S2 chip orders

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Apple's fall of 2016 product lineup has proven to be a major boon for supplier Advanced Semiconductor Engineering, as the Taiwan-based company is reportedly providing key silicon for both the iPhone 7 and Apple Watch Series 2.

Through its subsidiary Universal Scientific Industrial, ASE is said to have landed a contract to be the sole provider of the dual-core S2 chip that powers the second-generation Apple Watch, according to DigiTimes.

In addition, ASE has also landed system-in-package orders for the Wi-Fi, Touch ID fingerprint sensor, and 3D Touch components found in both the newly released iPhone 7 and iPhone 7 Plus.

Tuesday's report also identified Kinsus Interconnect Technology as the main substrate supplier for Apple Watch Series 2, with Nanya PCB accounting for a "small portion."

In recent years, Apple has brought the development of custom silicon largely in-house. Manufacturing of those chips, however, must still be outsourced to suppliers.

Both the Apple Watch Series 2 and iPhone 7 lineup debuted last Friday.