Although to most iPhone fans, this would be far bigger news (than just about anything else), it was an afterthought in the DigiTimes post, not appearing until the 3rd paragraph, where they said:
Pegatron will also start shipping a CDMA version of the iPhone 4 to Apple in the fourth quarter and is currently using its plants in Shanghai, China to produce the products, the sources noted. The company is also working on gaining orders for MacBooks and iPads from Apple, added the sources.While not specifically listed Verizon, CDMA implies one of two carriers in the U.S.: Verizon or Sprint, and it's unlikely Sprint would get the iPhone 4.
On the other had, we have previously predicted, based on AT&T's recent generousity (ahem) towards its customers with regards to upgrading to the iPhone 4, that we might see a Verizon iPhone in early 2011, anyway.
This story is also interesting because Foxconn's Shenzhen factory (yes, the suicide-plagued one) has been manufacturing iPhones and iPads until now; while it might make sense for a CDMA iPhone with much different technology than a GSM iPhone, to be made at a different site, why would Pegatron get the iPad?
Still, it aligns with our prediction, so that's one thing in its favor. However, since Verizon has previously said its first LTE device would not show up until mid-2011, that would mean any such iPhone would be CDMA only, embracing the dying CDMA technology that doesn't allow you to use voice and data at the same time. Sigh.