The new processor bound for the Apple (NASDAQ: AAPL) iPhone 8 — likely the A11 chip that will succeed Apple's A10 Fusion processor — recently entered production, according to a report.

DigiTimes said on Thursday that Taiwan Semiconductor Manufacturing Company started production of the new advanced chips for Apple's iPhone 8, following a few reported setbacks related to how the processor was stacked inside the phone. DigiTimes has an on-again-off-again track record, but typically has good insight into movements within Apple's supply chain.

The report doesn't mention Apple's two other expected devices, the iPhone 7s and iPhone 7s Plus, by name. However, those devices are also expected to pack Apple's next-generation chip. All three phones are expected to launch this year, though recent reports have suggested Apple's high-end iPhone 8 is facing delays.

KGI's Ming-Chi Kuo said earlier this week production delays related to new OLED panels and 3D sensors could present a "worst-case scenario" of iPhone 8 shortages later this year. The iPhone 7s and iPhone 7s Plus are still expected sometime in September, when Apple typically launches its new iPhones.

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