Taiwan Semiconductor Manufacturing Company (TSMC) reportedly will begin producing fingerprint sensors for Apple's next-generation iPhone at its 12-inch fab using a 65nm process in the second quarter of 2014, according to industry sources.

　　However, in order to ensure the yield rates of the new fingerprint sensors, TSMC is also expected to handle the backend wafer level-chip scale packaging (WL-CSP) process in house, instead of subcontracting the packaging process to IC backend service firms as done previously, the sources revealed.

　　TSMC has been fabricating the fingerprint sensors for iPhone 5s at its 8-inch fabs, while outsourcing the backend services to Xintec, China Wafer Level CSP and Advanced Semiconductor Engineering (ASE).

　　Due to limited packaging capacity, TSMC may switch part of packaging orders for Qualcomm's chips to STATS ChipPAC, the sources added.

　　Meanwhile, TSMC will also begin to produce application processors for Apple soon using a 20nm process, said the sources, noting that the production of APs will be ramped up significantly starting the third quarter.