Apple may invest $1 billion in Sharp plant in Mie

Apple Inc. is likely to invest around $1 billion in Sharp Corp.'s Kameyama factory in Mie Prefecture to secure supply of displays for iPhones and iPads, MF Global FXA Securities Ltd. said in a sales note.

"This would have a material impact on Sharp's profitability," the note says. "We expect positive news flow to come out over the next few months."

In December, the Nikkei financial newspaper reported that Sharp would invest about ¥100 billion to build a new display production line for Apple, which would mainly shoulder the cost. The paper reported June 2 that Sharp plans to up its output at the Kameyama No. 2 plant after receiving orders from Apple.

Calls to Sharp offices in Tokyo and Osaka went unanswered amid the Bon vacation. Apple declined comment.