Many news sites are reporting the rumor that Japan Display Inc. (JDI) may build a new display factory in Japan that could be ready for 2016 production. Even though JDI won't confirm the rumor, details from some reports peg the plant will cost US$1.68 Billion and that Apple will supposedly shoulder most of the cost.
Even though several reports say that the production will be for Apple, the Wall Street Journal points out that JDI is pursuing orders from China's Xiaomi. The report also states that "The person familiar with the matter said Japan Display is getting many inquiries from clients on its expansion plans." In many ways it sounds like a planted rumor designed to help bolster JDI's stock which took a 5% leap on the rumor today.
In November there was a rumor that Foxconn would be partnering with Innolux to build a display plant in China for production in 2015. With Apple's iPhone 6 orders being under pressure to meet demand there's no doubt that Apple needs more capacity. However, which of the display plant rumors will actually play out in the future is unknown at this time.