Apple plans to invest in Taiwan's leading flat panel maker AU Optronics Corp., according to unconfirmed reports. Apple was said to transform AUO into an active-matrix organic light-emitting diode (AMOLED) screen supplier for production of future iPhones.

AUO declined to comment, although its shares soared Tuesday.

AUO is already developing AMOLED displays for Chinese firms, such as Huawei Technologies Co. and TCL Corp.

Currently, Apple's iPhone are using low temperature poly-silicon (LTPS) panels made by Japan Display, Sharp and LG Display. The company is expected to make the jump into AMOLEDs for its future phones.