It has been reported that Apple has stopped having its A5 processor being produced by Samsung and has instead reached an agreement with Taiwan Semiconductor Manufacturing Company (TSMC). The report from EE Times is based upon rampant rumours that Apple and TSMC have entered into a "foundry relationship".
With little or no fanfare, Apple and TSMC have recently entered into a foundry relationship, sources said. As reported, TSMC will make the A5 dual-core processor on a foundry basis for Apple’s iPad 2.
The report writes that Apple will use TSMC's 40-nm process for the current A5 processor but also plans to move to a 28-nm process.