Some of that added capacity, 20,000 wafers, will be converted to 16nm technology with the A9 and A9X processor being built for Apple during the third quarter of 2014. It is not known whether Apple will be using another silicon slinger to supply these chips. TSMC's 12 inch fab in Southern Taiwan will be where the chips for Apple will be produced. Capacity will start at 10,000-12,000 12 inch wafers and will pick up as the new year begins.
Apple has been rumored to have made a deal with TSMC many times before. The Cupertino based tech giant is trying to divorce itself from Samsung as its Korean rival has been responsible for most of the Ax chips found in devices like the Apple iPhone and Apple iPad.