Apple is rumoured to be working on its next CPU, the A8. It should be a system-on-a-chip with processors and mobile DRAM in a single package.

The rumour comes from DigiTimes, which claims Stats ChipPac and Advanced Semiconductor Engineering will handle all the packing and orders for the A8.

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The report also reveals that Taiwan Semiconductor Manufacturing Company is planning to increase production of its 20-nanometer chipmaking processor for the A8. Production should begin in the second quarter of 2014.

With Apple using the same A7 chip in all its mobile devices the A8 will have a lot of pressure on it to carry Apple's phones and tablets to the top of the market.