A report from Japan’s Nikkei business newspaper (via MacRumors) indicate that Foxconn and Sharp which previously entered into a partnership to further advance LCD technology; will be teaming up at a new plant in Chengdu, China to produce displays for the next-gen iPhone.

The article read, “Japan’s Sharp Corp will supply technological know-how to Taiwan’s Hon Hai Precision Industry Co (Foxconn) for a plant in China that will produce panels for Apple Inc’s iPhone and other consumer electronic products. The Nikkei said that the new technology handover, for which Sharp will receive tens of billions of yen in fees, is aimed at improving quality management at Hon Hai’s planned plant in Chengdu.”

The Cupertino technology giant has been streamlining its supply chain and via that process it has apparently resulted in a closer partnership between component suppliers such as Sharp along with device assemblers like Foxconn.

Sharp was reported to be the main component supplier for the new iPad’s display but after it had apparently fallen short of quality standard expectations, Apple were force to shut out the company from its initial shipments and it had to make to do with displays from rival companies LG and Samsung.

If the information from the Nikkei Business newspaper is true, this would mean that Sharp has stepped up its game in Apple’s eyes and this new partnership with Foxconn will forge a new way forward for the companies involved.

Filed in Apple >Cellphones. Read more about Foxconn and Sharp.

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