According to a new report from China Times today, TSMC will be producing 120 million Touch IDs throughout 2014, which represents a growth of roughly 233% since last year. Supply chain sources have also indicated that the first batch of Touch IDs will start being shipped in early July. The increase in Touch ID production may either reflect Apple's move to introduce two new iPhones this fall in the form of 4.7 and 5.5 inch models or that Touch ID will may be coming to one or more models of their next generation iPads. We first reported on TSMC producing Touch ID assemblies for iPads back in early May.
The Times' report notes that according to their industry sources, Apple's new generation of fingerprint identification will improve the sensor module durability by introducing tin in some capacity.
Apple's Touch ID uses an optical-type of wafer and shell case from Israel. Taiwan IC packaging and testing plant has an exclusive licensing deal for the casing.
The China Times report also speculates that Apple has been working on expanding the Touch ID's functionality via a partnership with PayPal, though there's been no official statement on this from PayPal.