Sharp will be the first Japanese company to have the capability to produce OLED displays for smartphones, and plans to supply OLED displays to Hon Hai this summer.

"Sharp will have mass production capability for OLED displays used in smartphones as soon as this quarter, but the shipping schedule is estimated to be between June and September to meet product launch schedules," Sharp president and chief executive officer Tai Jeng-wu told reporters after a news conference in Taipei.

The company is reportedly eyeing a share in the supply chain of Apple's OLED-screen iPhone X, of which Hon Hai is the sole assembler.

Samsung Electronics dominates OLED display technology, but Sharp has been stepping up its efforts to catch up with the South Korean company.

Sharp would also introduce a new smartphone featuring an OLED screen under its own brand in June or July, Tai said.

Japan Display, Sharp's Japanese peer, is expected to begin mass production of small OLED displays by next year at the earliest.