Apple looks set to palm off the manufacture of the A4 processor and its anticipated A5 successor to Taiwanese foundry TSMC.

Taiwanese news site has reported the news based on unnamed industry sources. Apple uses the A4 processor in its iPad and latest iPhone 4 smartphone and is currently manufactured by Korean giant Samsung Electronics, which also made the S5PC100 for the previous-generation iPhone 3G S. claims that Apple’s concerns over Samsung’s direct competition in the smartphone market is a possible reason for the move, fearing that its A4/A5 technology could turn up in a rival’s product. TSMC has been a manufacturer in the past of AMD processors with sources suggesting the Taiwanese chipmaker could become the exclusive producer of the A5 processor, expected to appear in the up-coming Apple iPhone 5 smartphone.

The rumours have not been corroberated by Apple, Samsung or TSMC.

The A5 processor is expected to be a dual-core ARM Cortex A9-based CPU with claims it will mate up with Imagination Technologies’ SGX543 dual-core graphics processor in the Apple’s next-generation iPhone.

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