China-based smartphone vendor Huawei is likely to be the first client for Taiwan Semiconductor Manufacturing Company's 16nm FinFET process node, according to industry sources.

The 16nm chip, designed for smartphone application, is developed by Huawei's subsidiary HiSilicon Technologies and is expected to debut in early 2015, said the sources.

In addition to the wafer foundry orders, Huawei has also decided to utilize TSMC's backend CoWoS (chip on wafer on substrate) packaging process for the 16nm chips, the sources added.

Huawei will be the second client for TSMC's CoWoS backend services, trailing after only Xilinx.

Since the prices of TSMC's CoWos packaging services are relatively high, TSMC has developed a cheaper InFO (integrated fan-out) process for clients to choose from.