Intel already announced plans to let TSMC manufacture Atom system-on-a-chip devices all the way back in March. Today, TG Daily quotes a Taiwan Economic News report that says TSMC will also get to make matching chipsets.
The Taiwanese paper purportedly claims TSMC will start manufacturing Langwell, technically an I/O hub, later this quarter using 65-nm process technology. For those not in the know, Langwell is the companion chip to Lincroft, the upcoming SoC that will combine an Atom microprocessor core, a memory controller, and integrated graphics. Together, those two pieces of silicon make up the Moorestown platform for handhelds.
Intel probably has enough manufacturing capacity to build all the Atom parts it wants. When Intel and TSMC announced their partnership in March, however, they presented the move as a way to "expand Intel's Atom SoCs availability for Intel customers for a wider range of applications through integration with TSMC's diverse IP infrastructure." Quite possibly, Intel wants to let third parties license and tweak future Atom parts to their liking.