Japan Display is in talks with Apple about the possibility of manufacturing smartphone screens, Reuters reports. Citing a “person familiar with the situation,” the report reveals that Japan Display and Apple are presently negotiating, with Japan Display looking for Apple to carry the majority of the 200 billion yen ($1.7 billion) investment in building a new display manufacturing plant. The discussions are confidential, but a successful deal between the two companies would attempt to have the new plant in operation next year, and would make Japan Display the primary supplier of displays for next-generation iPhones. The report notes the new plant would be expected to have a larger capacity than Japan Display’s existing facilities in Mobara — a plant that is running close to its capacity, according to Japan Display CEO Shuichi Otsuka. Japan Display currently produces approximately 50,000 meter sheets of LCD screen per month, with some of the sheets being used for the iPhone 6.
Update: Japan Display has confirmed that it will build a new $1.4 billion LCD manufacturing plant starting in 2016, and a source within Apple has confirmed the plant will supply display screens for the company. Apple will also be “investing an unspecified amount” in the plant, furthering the possibility that Japan Display will become the primary supplier for iPhone screens.