Here are your Apple rumors and AAPL news items for Tuesday:

TSMC Increases Production of 28nm Mobile Chips: Apple (NASDAQ:AAPL) partner Taiwan Semiconductor Manufacturing (NYSE:TSM) plans to accelerate manufacturing of 28-nanometer ARM processors, according to Apple Insider. There was no confirmation that Apple would be the recipient of the added chip production volume, but Apple Insider noted that Apple might be looking to shift away from its close chip alliance with Samsung as the Korean electronics giant emerges as a key rival in the smartphone market. Apple currently uses larger, more power-intensive chips in much of its technology, but has been experimenting with sub-45nm chips in some of its devices.

European Telecoms Predict Failed Nokia Challenge to iPhone. Four of Europe’s largest telecommunications carriers think that Nokia‘s (NYSE:NOK) Lumia line of smartphones will fail to provide a significant challenge to the market dominance of Apple’s iPhone and Google‘s (NASDAQ:GOOG) Android models, according to a Reuters report. The telecoms said the Lumia smartphones, available in Europe since Christmas, are “not good enough” to rival the iPhone or Samsung’s Galaxy line. The Lumia 900 recently debuted in the U.S. to brisk sales, but have experienced data connectivity trouble. Reuters notes that the Lumia 900’s Microsoft (NASDAQ:MSFT) Windows operating system was a problem. “No one comes into the store and asks for a Windows phone,” one executive told Reuters.

Google Facing Big Fines for iOS Privacy Violations: Google is under scrutiny by the Federal Trade Commission for bypassing Safari browser privacy settings, the Mercury News reports. Google already has been hit with $25,000 in Federal Communications Commission fines for interfering in the agency’s investigation of its “Street View” camera cars. Now, sanctions resulting from Safari privacy violations could reach $16,000 per violation, per day. The FTC had no comment on the report. The Mercury News says the violations could “easily run into the millions of iPhone, iPad and Mac users.” Google has called any privacy breaches “inadvertent.”

For more about the company, check out our previous Apple Rumors stories.