Apple Insider (via Digitimes, via Economic Daily News) brings word that United Microelectronics Corporation has nailed the contract to produce the Infineon powered 3G basebands for the next generation iPhone:

The newspaper maintains that UMC will use a 65 nanometer plant to produce the chip, which (though mistakenly written as PMB878) is known to be the PMB8878 -- an integrated circuit which provides cellular data on HSDPA networks up to 7.2Mbps and is the source of the hidden SGOLD3 reference in the latest beta of Apple's iPhone 2.0 firmware.

Infineon's EDGE (2.5G) chip powering the current generation iPhone, along with the aforementioned SGOLD3 string, starts to give this rumor a little weight. What do you think?