News out of China suggests that Amazon will be adding a device with a 6-inch, color E Ink screen to its Kindle lineup. Chinese newspaper the Economic Daily News is reporting that Massachusetts-based E Ink Corporation has landed an order from Amazon for an estimated three million color e-reader modules per month, with shipments expected to begin in March. In late 2010 E Ink announced its first color display — E Ink Triton — which is already in use in several commercial devices. While Amazon and Barnes & Noble have gone with LCD screens for color devices like the Kindle Fire and Nook Tablet, color e-paper has also been catching on, with Mirasol releasing the Kyobo e-reader in South Korea last year, and Ectaco the education-focused Jetbook Color in the United States in January. In addition to this purported six-inch device, Amazon is also rumored to be releasing an 8.9 inch version of the Kindle Fire tablet in the second quarter of 2012.

Update: The Digital Reader's Nate Hoffelder cites sources telling him that production hasn't ramped up on a 6-inch Triton display, and there simply wouldn't be time to do so for delivery on a color Kindle this year. We'll keep you updated if we hear more.