Toshiba has revealed that it is spending big money to build a factory that will supply Apple with small LCD panels for its iPhone and iPod touch range.

Tosh is to spend a staggering 100 billion yen (£757 million) on a factory that will be situated in Ishikawa Prefecture and be capable of creating high-res LCD displays – perfect for the iPhone and its Retina display tech.

According to the Nikkei Business Daily, the plant will be constructed in 2011, with production to start in the latter half of the year.

Through the looking glass

Toshiba is no stranger to producing high-res LCD displays. Its Mobile Display arm already makes low-temperature polysilicon LCD panels in the same area of Japan.

Its capacity is currently 8.5 million units and the building of the new plant will mean that Toshiba will be able to double its output.

And it's a bonus for Apple – who will be providing some of the cash for the plant – because it will now have a dedicated factory to churn out its fancy displays.

Via Reuters