While Foxconn has not announced any production increases, Digitimes claims that component suppliers have reported that Foxconn began shipping iPads from Chengdu earlier this month. Digitimes is claiming that Foxconn will put in 50 assembly lines at Chengdu bringing total iPad capacity to 40 million units annually, although it's not clear if that number is the combined output of the two factories or just units from the new factory.
It's worth keeping in mind that while Digitimes does sometimes break real news, it has a spotty record when it comes to accuracy. However, if the iPad follows the pattern of the iPod and iPhone before it, sales of the iPad could really explode when the second generation model arrives sometime next spring. The probable addition of "missing" features like cameras for FaceTime could push the iPad to a whole new level.