With the high demand for the new device, it's no surprise that Apple is looking for new sources for this critical iPad 2 component. The AU Optronics contract will provide up to 30 million of the displays, occupying over half the capacity of the company's plant in Taichung.
The report cites local Taiwanese paper The Economic Daily News as the source, and MacStories notes that AU Optronics is the world's fourth-largest supplier of LCDs. The move by Apple follows unprecedented demand for the iPad 2, which has likely sold just over a million units in just the first weekend of availability. There has been speculation that the recent earthquake and tsunami in Japan would cause production constraints on certain iPad 2 components, including the screens. With this new source of displays, Apple's ability to produce and ship iPad 2s should remain unfettered.