The report quoted sources from the tech giant’s supply chain, who claimed that Apple had ordered the modules from Advanced Semiconductor Engineering (ASE), of Taiwan. The modules will be used in both the iPhone 6S and iPhone 7, which are expected to be released in late-2015 and 2016 respectively, writes Jessie Shen for DigiTimes.

Apple Orders SiP Modules For iPhone 7 and 6S

Secretive relationship between ASE and Apple

Since the report surfaced, ASE has refused to comment. The company states that it does not comment on specific customers or products. However previous reports have claimed that ASE has an ongoing relationship with Apple, and reportedly provides SiP modules for the Apple Watch, which will be available to pre-order on April 10.

The Apple Watch was unveiled at an event in San Francisco yesterday, sending shares in ASE up. The company is the world’s largest integrated circuit (IC) packaging and testing services provider, and is thought to be providing that very service for the Apple Watch. The device is thought to feature Apple’s S1 SiP module, which contains a processor, memory chips and various other components.

The SiP has not been fully explained by Apple, but its small size will free up more space for batteries in the Apple Watch, iPhone 6S and iPhone 7. It is thought that 2015 versions of the iPhone will combine a PCB with a SiP, but the iPhone 7 will function using only a SiP.

Expanding SiP sales at ASE

ASE previously stated that its SiP sales business represented 18% of the company’s total revenues for the year 2014. It expects that proportion to expand to 30% for 2015.

If the Commercial Times report is to be believed, ASE looks set to expand its relationship with Apple. The unveiling of the Apple Watch triggered buying in ASE shares, and this latest report on the company’s alleged role as a supplier for the iPhone 6S and iPhone 7 may send the shares even higher.

Some commentators believe that Apple is on course to become the world’s first $1 trillion company, and investors seem confident that the Apple Watch, as well as future versions of existing products such as the iPhone, will sell well. ASE and other suppliers look set to benefit from their relationship with the technology giant.