I really don't think so. Apple has put a lot into Touch ID ($400 million to acquire that Israeli company + 2 years of R&D), and nothing more than Touch ID is truly needed on iOS devices. That's the real gaping hole in this rumor. It's just not needed.
TouchID was acquired from AuthenTec, which was formerly a part of Harris Semiconductor. It was always a US company, not an Israeli one.
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