According to Reuters, Japanese business news outlet Nikkei has recently reported that Apple is likely to make an investment in Toshiba's $1.2-billion LCD plant, which will manufacture small mobile phone displays for the future models of the iPhone.

Though the disclosure has not been substantiated by Toshiba, Nikkei revealed that the construction of the new factory will supposed commence early next year; and will be completed in time for production to begin the second half of 2011.

The new Toshiba plant will come up in Ishikawa Prefecture, an area that lies on the west side of Japan, and is approximately 200 miles from Tokyo. The plant will be run by Toshiba Mobile Display, a Toshiba unit that makes low-temperature polysilicon LCD panels at another factory in the same area.

As per Nikkei, once the new plant becomes fully functional, it should bring about a two-fold increase in the existing plant's monthly production of nearly 8.5 million display panels.

The information shared by Nikkei implies that the 2012 timeline of first results of production at Toshiba's new plant somewhat correlates with the expanded production of the fifth-generation iPhone model or probably even the sixth-generation iPhone.

Even though Apple has not disclosed its plans of an investment in the upcoming Toshiba plant, reports reveal that Apple apparently has an enormous stack of cash, and is moving towards a model where it has a substantial leverage over the manufacturing of its flagship products.