(Yicai Global) Aug. 15 -- The world's largest dedicated independent (pure-play) semiconductor foundry, Taiwan Semiconductor Manufacturing Co. (TSMC) [NYSE:TSM] is actively preparing to produce the 10 nanometer A11 processor chip that Apple Inc. developed for iPhone 8.

The new chip is much more compact but can deliver significantly improved performance relative to its predecessor, the 16 nanometer (nm) A10 installed on iPhone 7 and iPhone 7 Plus.

TSMC has already applied the 10 nm FinFET technology to the A10X processor that it manufactured for 10.5 and 12.9 inch iPad Pro models, Taiwan-based Digitimes reported. A10X is the first 10 nm chip that the company has produced for its clients, the report said.

It is expected that Apple will release the iPhone 8 early next month, but it remains unclear as to when the first batch of the new model will ship out. The tech giant will also introduce another two new models, the iPhone 7s and iPhone 7s Plus featuring the A11 processor.