Rumor has it that Apple is bound to invest one billion U.S. dollars on a Sharp factory, according to a Reuters report.

MF Global FXA also expressed belief that Sharp Corporation’s Kameyama factory will help provide a stable source of screens for iPhones and iPads. "This would have a material impact on Sharp's profitability, MF Global FXA Securities analyst David Rubenstein said.

A MacRumor’s report traces the news’ development back to December 2010, when a report from Japan stated that Apple was investing more than $1 billion in Toshiba for a new LCD factory that will produce displays for the iPhone. Later on reports came about a similar investment with Sharp. In January 2011, Apple, during an earnings conference call, announced that it has invested $3.9 billion in three companies to help secure materials for its products for two years. Sharp’s involvement became more clear in April 2011, with a report stating that the company has been selected to produce displays for sixth-generation iPhones. The new poly-silicon (p-Si) displays are said to allow for thinner and lighter displays, according to the report.

These rumoured deals with Sharp and Toshiba come in the light of a patent dispute between Apple and Samsung Electronics, involving alleged similarities in the design between Apple’s products and Samsung’s Galaxy S smartphones. This has led to speculations of Apple minimizing its reliance on Samsung for its components. For one, reports state that Apple has diversified from Samsung’s custom processors for its iOS devices. Reports also abound that the Taiwan Semiconductor Manufacturing Company has began the trial production of Apple’s A6 system-on-a-chip for iPhones, iPads, and other mobile devices.

Earlier this year, Sharp has expressed its plan to shift production from large displays to smaller screens for tablets and smartphones, such as the 3.5-inch, 640x960 display that is similar to the screen of the iPhone4. In view of Sharp’s deal with Apple for the supply of screens for sixth generation iPhones, Sharp’s plans may result to a price hike for Apple’s portable products, according to a Pocket-lint report.

Apple has divulged that it was investing in a technology that as big as its flash memory 2005. And Sharp is said to the producing the LTPS-based iPhone LCD that is energy efficient while it maintains quality. While Sharp could be responsible for the iPhone 6, iPad’s 2048x1536 display is said to the made by LG and Samsung, an electronista report said.

The demand for tablets, smartphone, small and medium-sized liquid crystal display (LCD) panels, the continues to rise. And since 2010, Apple is said have spent $2billion dollars for the manufacture of its iPads and iPhones. Sources for LCD panels include several manufacturers, such as Samsung Electronics, Sharp, Toshiba Mobile Display, and LG Display, according to a techzone360 report.

Reports reveal that other manufacturers, such as Japanese chipmaker Elpida Memory Inc., are hoping to take part as once Apple decides to further expand its diversification in terms of supply of product components.