The Kameyama plant makes IGZO displays, which consume 10 percent to 20 percent of the power required by conventional panels, for Apple Inc's iPad tablet.
The company has won orders for larger 30-inch displays from manufacturers, the report said, without citing sources.
The panels would be used for computed tomography (CT) or game monitors that require clearer definition than conventional high-definition displays, the report added.
Sharp, which secured $4.6 billion in emergency loans from its banks in September, is looking to IGZO to spark a revival in its fortunes, as it forecasts a 450 billion yen ($5.66 billion) net loss for the current business year ending next March.
($1 = 79.4500 Japanese yen)
(Reporting by Osamu Tsukimori; Editing by Michael Perry)
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