Taiwan-based AU Optronics and South Korea's LG Display will supply liquid crystal display (LCD) panels for Apple's new small-sized iPad, according to technology website DigiTimes.com.
AU Optronics will supply about 400,000 to 500,000 LCD panels while LG Display will supply around 600,000 panels.
Apple is preparing for the mass production of a smaller iPad, dubbed "Mini" by this year to compete with rivals including Samsung Electronics and Amazon.com.
In a separate development, the US Department of Justice (DOJ) asked a federal court to impose a $1bn fine on AU Optronics for the company's participation in a scheme to fix prices on LCD panels.
The DOJ said AU sold over $2.3bn worth of LCD panels during the price-fixing conspiracy in march 2012 and also asked the court to sentence company executives H.B. Chen and Hui Hsiung to 10 years in prison and fine $1m.
Prosecutors alleged that from 2001 to 2006, AU Optronics participated in a world-wide LCD price-fixing conspiracy, by which time the market for LCD panels was $70bn.
AU Optronics said it should face a fine of no more than $285m.
In July 2012, AU Optronics, LG Display and Toshiba have agreed to pay a combined $543.5m to settle a price fixing law suit in the US.
The case was filed in 2007 when Toshiba was sued by direct purchasers of LCD panels for involving in a conspiracy to fix the price of liquid crystal displays sold in the US.
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