After months of talk around Apple(s aapl) looking to diversity its list of hardware partners, it appears the talk is turning into action. Taiwan Semiconductor Manufacturing Co (TSMC) is reportedly building new chips for Apple’s next iPhone. AFP reported the news on Wednesday as seen on Geek.com, citing Commercial Times, which doesn’t always have the best track record on its predictions. However, the news would make some sense based on prior reports of Apple seeking another chip-maker to produce its silicon.

If the report is accurate it could be a financial blow to Samsung. The company isn’t just Apple’s biggest rival in mobile devices; it is also a key hardware partner that builds the chips designed by Apple for its iOS devices. That makes for a strained relationship that can only worsen when the two sue each other over mobile patents and phone designs.

Last July, the Wall…