Qualcomm Inc. will reportedly contract Taiwan Semiconductor Manufacturing Co. (TSMC) to make the 3G wireless chips that will equip Apple's iPhone5 and iPad2, which will be launched in mid-2011. The Taiwan-based China Economic News reported today that Apple has designated Qualcomm to supply 3G chips for the upcoming iPhone 5 and iPad 2. Market analysts estimate that Qualcomm will contract TSMC to make the chips, using TSMC's 65-nm process.

Until now, Apple has been using Infineon's wireless chips for all generations of iPhones from first to iPhone 4. The company has reportedly chosen Qualcomm over Infineon as the supplier of its iPhone5 chips after Intel acquired Infineon`s wireless unit.

The report also clais that Apple has left Broadcom Corp. for Qualcomm for base-band chips that its iPad2 will use.

Both TSMC and Qualcomm have not commented on the report