Refreshed internals, lower price point possible.
iPhone 6 Fingerprint Sensor Production Set to Gear Up in Q2 with Increased Efficiency
Taiwan Semiconductor Manufacturing Company (TSMC) reportedly will begin producing fingerprint sensors for Apple's next-generation iPhone at its 12-inch fab using a 65nm process in the second quarter of 2014, according to industry sources. [...]The Touch ID fingerprint sensor was reported to be the primary factor contributing to very tight supplies of the iPhone 5s at its launch last September, with low yield rates at packaging firm Xintec and iOS 7-sensor integration slowing production. With several of those issues now ironed out and TSMC able to get an earlier start on sensor production for the next-generation iPhone, that bottleneck on launch supplies appears likely to be solved.
TSMC has been fabricating the fingerprint sensors for iPhone 5s at its 8-inch fabs, while outsourcing the backend services to Xintec, China Wafer Level CSP and Advanced Semiconductor Engineering (ASE).