iPhone 5 to feature A5 processor, iPad 2 stays with A4

The oft-quoted DigiTimes, a Taiwanese tech industry favorite publication, has revealed that Apple is outsourcing the production of its A5 processor chip, which many expect will be based on the ARM Cortex A9 design and used in the forthcoming iPhone 5, to Taiwan Semiconductor Manufacturing Co.

AppleInsider reports that Apple's A4 chip is currently produced by Samsung Electronics, but the move to Taiwan Semiconductor for production of the A5 chip is because of Samsung's inability to keep up with Apple's supply demands.

This rumor follows many regarding Apple's iPhone lineup, including a larger, 4-inch screen and an iPhone Nano.

The DigiTimes report also speculates that the iPad 2 will retain use of the current A4 chip, though it will be an enhanced version of it. The iPhone 5 will be the first to sport the new A5 chip.