TSMC gives Qualcomm extra wafers for iPhone 5 - Wikimedia

TSMC is rumoured to be setting out extra wafer allocations to Qualcomm, which is said to be the company providing baseband chips for Apple's iPhone 5 and iPad 2.

According to Digitimes, TSMC will allocate around 1.8 million wafers for the production of Qualcomm chips next year, as opposed to the 1.1 million units that were reserved this year.

Sources have speculated that the additional 700,000 will include 300,000 to 400,000 for chips used in Apple devices.

Broadcom, NXP Semiconductors and Texas Instruments, also allegedly chip suppliers for next-generation Apple devices, are reported to be producing their chips at TSMC.

Sources predict orders placed by Qualcomm could contribute around NT$20 billion, or US $664 million to TSMC's overall sales in 2011.

Partially because of the contracts, consolidated revenues for 2011 are forecast to grow 15-18 percent.