A report from China Times (via GforGames) claims Taiwan Semiconductor Manufacturing Company is expanding its 8-inch chip plant in order to produce Touch ID sensors for the iPad Air 2 and iPad mini 3. TSMC is planning to produce 120 million Touch ID units in 2014, a 233 percent year over year increase as the sensor expands beyond the flagship iPhone to other iOS devices.

In line with a previous report from KGI Securities analyst Ming-Chi Kuo, today's report claims Apple and TSMC are using tin to increase the durability of the sensor compared to the current version found in the iPhone 5s.

Supply chain sources say TSMC is scaling its mass production of new Touch ID units to begin delivery to Apple by early July, with third quarter production more than doubling over the previous quarter. A previous report had indicated that the first shipments of new Touch ID sensors began by early May, but these may still have been early batches for testing.

Similar to the iPhone's Touch ID, the iPad version will support the expanded functionality made possible by iOS 8's new SDK that allows third-party apps to access the fingerprint scanner for verification purposes. Touch ID also is rumored to be part of a mobile payment system under development by Apple.

Recent leaks hint at how the next-generation iPad Air and iPad Mini may appear with a Touch ID module and other design refinements such as a changed speaker grille and recessed volume buttons.