Japan's Sharp Corp said on Thursday it would start production of small liquid-crystal display panels for use in smartphones at its Kameyama No. 2 factory this year.

The previous day the company denied a report in an industry newspaper that Toshiba Corp had been chosen to produce small LCD panels for Apple Inc, and that Sharp had been dropped as a supplier.

(Reporting by Isabel Reynolds; Editing by Chris Gallagher)

Japan Apple inc. Foxconn Smartphone