Rumors swirl that Toshiba to open new plant that will produce LCD screens for Apple iPhoneRumors have been circulating that Apple Inc. ordered its Taiwan-based supplier of iPads, Foxconn, to deliver between 400,000 and 600,000 of its next-generation iPad within 100 days and now, a report in the Nikkei business daily contends that Toshiba will spend $1.19 billion to build a factory that will manufacture parts for Apple's iPhone.

According to Reuters, Toshiba will build the factory and is responsible for making small LCD panels that it will mostly supply to Apple for its iPhones. The facility will produce low-temperature polysilicon LCD panels that generate high-resolution images. With each new version of the iPhone, the resolution on the screen has exponentially increased.

The report affirmed that work on the plant will begin early next year and it will be operational by late next year. Currently, Toshiba manufactures the low-temperature polysilicon LCD panels, but with the increased manufacturing capacity of the new plant, it will double production from its present output of 8.55 million units.

Apple is expected to invest in a portion of the factory and with the increased manufacturing capacity, hopes to avoid the supply shortages that plagued the release of the iPhone4 when it launched this past summer.
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