Taiwan Semiconductor Manufacturing Company (TSMC) has recently begun to tape out the design for Apple's A11 processor built on a 10nm FinFET process, according to industry sources.

TSMC is expected to achieve certification on its 10nm process in the fourth quarter of 2016, and deliver product samples to the customer for validation in the first quarter of 2017, the sources continued.

TSMC could begin small-volume production for Apple's A11 chips as early as the second quarter of 2017, the sources indicated. Building the chips will likely start to generate revenues at TSMC in the third quarter.

TSMC is likely to obtain about two-thirds of the overall A11 chip orders from Apple, the sources said. The A11-series processor will power the iPhone models slated for launch in the second half of 2017.

TSMC has responded saying the company does not comment on market rumors or speculation.