Apple has opened a secret production laboratory in northern Taiwan where engineers are developing new display technologies, according to people with knowledge of the facility. The lab, located in Longtan, has at least 50 engineers and various other employees working to develop iPhone and iPad displays.

According to Bloomberg, Apple has recruited its employees from local display maker AU Optronics Corp. and Qualcomm Inc., which used to own the building. Apple began operating the lab this year as it aims to make products thinner, lighter, brighter and more energy-efficient. Engineers are developing more-advanced versions of the liquid-crystal displays currently used in iPhones, iPads and Mac personal computers, the people said. Apple also is keen to move to organic light-emitting diodes, which are even thinner and don't require a backlight.

Making its iPhones and iPads slimmer and longer-lasting with each generation has been a hallmark of Apple, helping drive $178 billion in annual sales from the two product categories.  Another goal of Apple's with developing its own screen technology is to reduce reliance on suppliers like Samsung, Sharp, and Japan Display.

 9to5Mac says that Apple already does a lot of the research for its devices in-house, but outsources the actual manufacturing processes to several other companies. The iPhone maker also employs scientists and engineers globally to develop materials and manufacturing technologies.

Apple is said to have moved into the Taiwan lab in April. Qualcomm Display occupied the lab from 2008 until this year. One potential thought on Apple's part could be that if it begins to manufacture more components in-house, they could have a stronger control on the flow of production.

 The Straits Times reports that, Apple continues looking for engineers to work at its display panel facilities, according to job postings on LinkedIn's website.

Tucked in a corner of Longtan Science Park, between a forest and the building site for a new biotechnology factory, the structure shows no outward indications of belonging to the world's most valuable company.

Fifty kilometres from downtown Taipei and within an hour's drive of the Foxconn headquarters, the white-tiled factory displays no corporate signage, a stark contrast to neighboring plants emblazoned with 1m-tall logos for Leotek Electronics Corp, Taiwan Semiconductor Manufacturing and AU Optronics.

A short driveway, a half-dozen steps and sliding glass doors lead to a counter and a receptionist in front of an Apple logo on the wall. That sign, and an iMac displaying Apple's standard visitor registration screen, are the only visible indicators Apple resides here.

The receptionist would not provide the name or contact details for someone who could talk about the facility. Guards at an outside security post also declined to give contact details for anyone responsible.

On Monday, a small group of workers with Apple ID badges around their necks stepped off the property for a smoking break amid the hum of industrial filters. They declined to comment on the building's purpose and what they're working on.  But it seems that Apple is working secretly on thinner, lighter, brighter and more energy-efficient displays at Laboratory in Taiwan that will power the next generation of iPhones.