"Apple has successfully finalized a solution to integrate Touch ID fingerprint recognition directly into the display of its upcoming iPhone 8," said a source from the Taiwan Semiconductor Manufacturing Company (TSMC). This company is one of Apple's suppliers.
These reports are coming from Economic Daily News, which is a Chinese newspaper that interviewed TSMC at a recent technology convention in Taipei, Tawain.
You can read more about what to expect right here. Or you could just wait until the iPhone 8 comes out and see for yourself.