$Apple (AAPL.US)$ is likely to be the first company to use an updated version of $Taiwan Semiconductor Manufacturing (TSM.US)$'s latest chipmaking technology next year, while also planning to adopt it for some of its iPhones and Mac computers, reported Nikkei Asia, citing sources.

The Chip: TSMC's N3E chipmaking technology will be used to mass-produce the A17 mobile processor, currently under development, the report said. It will be used in the premium entry in the iPhone line-up set for 2023 release, it said.

What is N3E: N3E is an upgraded version of TSMC's present 3-nanometer production tech. This will be used by the next generation of Apple's M3 chip for its Mac offerings, the report said citing sources.

N3E will present better performance and energy efficiency, as well as cost-effectiveness, the report said, quoting TSMC from a recent technology symposium in Hsinchu.

The 3-nm technology is suitable for all types of central and graphics processors for smartphones, computers and servers, along with those used in artificial intelligence computing, as per the report.

Apple and TSMC did not immediately respond to an email seeking comments.

Analyst Take: Dylan Patel, chief analyst with Semianalysis, said Apple may use different levels of production tech to introduce greater differences between its premium and non-premium models, Nikkei reported. "Previously the biggest differences have been in screens and cameras, but this could be expanded to include processors and memory chips," he said.