Infineon’s S-GOLD3 has been confirmed as the chipset to be used in Apple’s upcoming 3G iPhone as predicted.

According to DigiTimes, Chinese paper Economic Daily News has confirmed that UMC have been selected and will produce the chip on Infineon’s behalf.  The chip, PMB8878, will be manufactured on UMC’s 65nm line.

To recap, the chipset is capable 7.2 Mbps, camera resolution of up to 5-megapixels, a 2x speed MMC / SD interface, MPEG/H.263 hardware acceleration and video telephony, streaming, recording and playback.

Perhaps Apple will take advantage of those impressive features, or more likely, lock all those features out and slowly grant access over time. I know Apple all to well…