I don’t think this can be used as a tool to guess when Apple’s next gen iPhone may release, but it’s good info none the less. Macrumors via Reuters is reporting that the two companies are working together to get a new plant up and running in Chengdu, China for iPhone displays:

“Japan’s Sharp Corp will supply technological know-how to Taiwan’s Hon Hai Precision Industry Co for a plant in China that will produce panels for Apple Inc’s iPhone and other consumer electronics products, the Nikkei business daily said on Thursday. [...]”

The Nikkei said that the new technology handover, for which Sharp will receive tens of billions of yen in fees, is aimed at improving quality management at Hon Hai’s planned plant in Chengdu.”

Sharp was initially shut out for iPhone display production due to some problems they gave Apple in regards to the iPad 3′s display. It seems like all of that has been resolved as Apple gets ready for iPhone 5 production.