Photo courtesy of AT&T and Christian Post Reported Vincent FunaroiPhone 5 (AT&T Model)

New rumors have suggested that the upcoming iPhone 5S smartphone will feature a newly constructed A7 chip. According to the rumors, Apple will seek the help of both Intel and TSMC to create the new processor.

The rumors have been sparked by blog GadgetSoup.com, and come after the company cut most of its ties with former partner Samsung, which created the older chips found on past iPhone models.

KGI Securities analysts predicted that Apple would leave behind the older processors in favor of a new A7 chip. There is also the possibility that Apple would introduce the new processor on the next-generation iPad if the company decides to launch it before the new iPhone. This iPhone 5 launched in the fall of 2012 with the powerful A6 chip found in the third-generation iPad which came out in the winter of the same year.

The A7 chip will feature 64-bit computing, according to KGI Securities. This will make for a speedy and energy-efficient computing rendition on mobile devices. The chip was originally meant to launch on most Apple devices in 2014, however, the company might push it out sooner for the new iPhone.

Apple also has to step up its processor due to tough competition from companies such as its former partner Samsung and LG. The LG Nexus 4, which is one of the best Android smartphones on the market, runs a quad-core 1.5GHz Snapdragon processor with an Adreno 320 GPU and 2GB RAM. This poses a serious challenge for Apple who must match-up or out-do the smartphone.

KGI Securities also reported that the iPhone 5S will be available unlocked for $600. The starting price on contract for the 16GB model will probably run $200.