Toshiba Denies Apple LCD Factory Rumors

A new rumor claims Apple is teaming up with Toshiba to build a US$1.9 billion factory that will supply LCD panels primarily for the iPhone. Toshiba, however, is denying the rumors.

According to Reuters, sources claim Apple plans to invest in a new Toshiba factory in Ishikawa, Japan, that will build high resolution low-temperature polysilicon LCD panels. Plant construction is supposedly set to begin in early 2011.

Apple, Toshiba factory deal? Not likely.

Toshiba subsidiary, Toshiba Mobile Display, already has a factory in the area, and adding a new facility would more than double the area’s display production capabilities.

For its part, Toshiba claims that it hasn’t made any decisions related to a new display manufacturing facility for Apple. Apple is sticking with its standard policy of not commenting on rumors.

Denying its building a factory for Apple display production isn’t the same thing as denying a factory is being built, so it’s still possible the rumor is at least partially right. Assuming Toshiba does break ground on the Ishikawa facility, Apple could eventually buy iPhone display components manufactured at the factory — potentially easing some of the strain on Apple’s display suppliers.

With Toshiba in denial mode, however, the likelihood this rumor will pan out seems slim.