Digitimes Reports iPhone 5S Production Has Been Lower Than Planned, As They Usually Do With Any New Apple Product 

Digitimes:

Volume production of fingerprint-recognition and LCD driver chips for the iPhone 5S should have started at the end of June or early in July, but issues related to yield rates will delay commercial production of the two chips to the end of July, therefore affecting the initial supply of the iPhone 5S, the sources explained.

The fingerprint recognition chip is designed by AhthenTec, of which Apple acquired for US$356 million in July 2012. Issues related to the original design of the chip reportedly caused the lower yield rates, claimed the sources, adding that Apple outsources the production of the fingerprint recognition chips to Taiwan Semiconductor Manufacturing Company (TSMC) and the packaging of the chips to Xintec.

Digitimes, at least, thinks that the fingerprint sensor integration is still a go on the 5S, even though rumours of the feature have died away in the last couple of months.