Apple is winning the mobile chip battle so far, with rivals trailing behind the iPhone when it comes to performance. It certainly helps that Apple develops its own silicon and optimizes the software to ensure a smooth iOS experience. Come next year, a new generation of mobile processors will arrive, and the iPhone 8’s chip will be one of the devices expected to pack an even faster and more efficient CPU.

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Apple is expected to make the jump from 16nm chip technology to 10nm chip technology. TSMC will manufacture the 10nm A11 chip that will equip the iPhone 8 next year, a new Digitimes report, something we heard of before.

The tech site says that TSMC is expected to post a 3% sequential drop in consolidated revenues in the first quarter of 2017, thanks to Apple’s cutback in 16nm chip orders for the iPhone 7.

But the foundry’s 10nm process technology will soon start generating revenue. According to sources, 10nm manufacturing will start during the same quarter and should mitigate the impact of Apple’s cutting iPhone 7 chip orders.

The Apple A11 chip will not be the only mobile processor built on 10nm technology next year. TSMC will make 10nm chips for MediaTek, but also HiSilicon, and Spreadtrum. Samsung is also working on its own 10nm chips for high-end Galaxy devices, and Qualcomm’s Snapdragon 835 chip is also based on the same technology.

The A10 Fusion chip used in the iPhone 7 and iPhone 7 Plus outpaced competitors in many tests and real-life comparisons. That’s hardly surprising considering that the iPhone 6s still manages to outperform smartphones that were launched this year, including Samsung’s Galaxy S7 and the now-dead Galaxy Note 7.

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