Apple is expected to push forward the adoption of IGZO (indium gallium zinc oxide) flat panels, instead of IPS (in-plane switching) panels used currently, for its next-generation mobile display products, according to sources in Apple's supply chain.

Starting with the new iPads, Apple will utilize IGZO panels from Sharp in order to upgrade the display resolution of the new tablets to full HD level, the sources indicated.

To enter the supply chain of iPads, Sharp has switched some of its capacity for large-size panels to the production of small-size panels for smartphones and tablet PCs, said the sources, adding that Sharp will also continue to roll out its Galapagos tablet lineup in 2012 using IGZO panels.

Most Taiwan-based flat panel makers are capable to produce IGZO panels, but the yield rates of such panels still remain a major concern for the makers, said the sources.