Taiwan Semiconductor Manufacturing (TSMC) has reportedly started producing chips for Apple's next iPhone device.

The report means the U.S. firm could be offloading Samsung as its main supplier.

The top contract microchip maker in the world said in February it started producing the A8 chip, which is expected to produce the next iPhone device, according to a report by Commercial Times, citing supply chain sources.

Multiple media outlets have said the new phone will likely have a 4.7-inch screen, and could hit stores for purchase sometime during the third quarter.

The 20-nanometer A8 will include a quad-core 64-bit processor and quad-core graphics.

The earlier TSM starts chip production starts, the more flexibility Apple will have to comfortably launch its next phone. In previous years, Apple has had trouble getting out enough iPhones to stores due to production issues.

Samsung has been Apple's exclusive production partner for A-series chips, but Apple has been slowly trying to shift orders completely to TSMC.

"This is another sign Apple has been shifting more orders away from Samsung," an analyst at a foreign company in Taipei said to AFP on condition of anonymity.

Originally Samsung and TSMC were going to split production for the A8, but now the Galaxy S5 maker is supposedly dropping out "due to low yields," according to MacRumors.

Samsung produced approximately 30 percent of all smartphones sold around the world in 2013, which is twice the amount Apple sold, according to Reuters. 

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