According to a Bloomberg report, Apple’s secret facility in Taiwan is working on display technology, most likely OLED panels.

The lab in Longtan employed around 50 engineers and other workers are creating new screens for devices including iPhones and iPads, the report quoted sources that asked not to be identified. Apple recruited staff from Taiwanese display manufacturer AU Optronics and Qualcomm, which used to own the building, said the people.

Apple spokeswoman Kristin Huguet declined to comment on the issue.

It is believed the engineers at the Taiwan plant are working on making thinner, lighting, brighter and more energy efficient displays for iPhones, iPads and Mac personal computers, said the people. Apple might also be interested in OLEDs which are thinner than LED displays, and don’t require backlight, they said.

By investing on in-house display technology, or outsourcing to smaller manufacturers including AUO or Innolux, Apple could reduce its reliance on the technology developed by suppliers including Samsung Electronics, LG Display, Sharp and Japan Display.  

AUO shares surged 7%, the most in four months, in Taipei and Innolux increased 2.6%. Japan Display was down 3.9% in Tokyo to the lowest in more than two months, and Sharp fell 1.6%.