According to Taiwan-based news organization The Liberty Times, LG and AU Optronics were selected by Apple to produce screen for the mini tablet.
Both companies are reportedly preparing to start production of these screens which will probably be supplied to Foxconn factories.
The new tablet is expected to be released in the second half of 2012 and some analysts believe that the launch will coincide with that of the iPhone 5.
The iPad mini is expected to be priced at around $250 (£160), allowing the device to compete with other small-sized tablets on the market.
The tablet is also rumored to feature an iPad 3-like Retina display and a display that measures 7.85 inches diagonally.