Apple has signed-up United Microelectronics Corporation (UMC, NYSE) to create chips for the next-generation iPhone.

The move means the end to the sole supplier status enjoyed by former supplier of these particular components, Taiwan Semiconductor Manufacturing, according to local reports.

Siliconware Precision Industries Co. will provide packaging and testing of the UMC chips contracted for use in the iPhone, the report adds.

Later reports confirm the company has been asked to produce Infineon Technologies' 3G baseband chip, which will be used in the new Apple iPhone that supports 3G. UMC stock currently stands at $3.39 on the New York Stock Exchange.