Toshiba and Apple have formed an agreement for Toshiba to manufacture future high resolution LCD screen panels for the iPhone. These are currently manufactured by LG for the iPad and iPhone.

This news broke via Nikkei Business Daily who say that a new factory will be set-up in Japan in readiness for the iPhone 5 or iPhone 6. The new factory is reported to cost over £750 million and will be completed sometime next year.

Nikkei Business Daily reports that this will double the current production levels from LG and is part funded by Apple.