Amazon Tablet using E Ink Hydis FFS display for 2H 2011 release?

The Amazon tablet rumors refuse to die, and now there are whisperings of another OEM and even some component orders to throw into the mixture. After rumors last month that Samsung would be producing the Amazon tablet for a potential late-Summer release, now DigiTimes' sources have waded in with word that Quanta Computer will be handling production, using Fringe Field Switching LCD displays sourced from epaper manufacturer E Ink.

E Ink obviously already supplies the displays for the Kindle ereaders, but by using an LCD panel Amazon's tablet would be able to show color graphics, video and other more dynamic content. Fringe Field Switching panels -  which are actually produced by E Ink subsidiary Hydis – are similar in technology to IPS displays such as used in the iPad 2 and Eee Pad Transformer, with boosted viewing angles and better color accuracy.

Meanwhile, that Hydis FFS display will be paired with an E Ink touch panel, as Amazon attempts to take on markets outside North America and Europe, where it has reportedly struggled with Kindle penetration. The sources suggest Amazon is looking for 700,000 to 800,000 units at peak production, with deliveries first expected in the second half of 2011.