Japan Display Inc. has started building the 2nd generation “Pixel Eyes” touch LCD display modules. The new modules are designed with high performance phones in mind.
The new materials used in the 2nd gen modules produce much deeper blacks, shave off border edges (0.5mm versus 0.8mm previously), and bring the ability to use a finer stylus (1mm versus 2mm previously). They also bring wet finger support.
Although Sony hasn’t come right out and said it, they have said there is a high chance these displays will be used in the next Xperia Z phones.