Quality control problems with LCD panels from LG Display may have contributed to the prolonged shortage of the iPad 2. According to the report from Digitimes, early batches of the 9.7-inch panels supplied by LG had a light leak issue that limited LG's ability to meet demand. As a result, LG only produced 3.2 million panels in the first quarter of 2011, a figure that trails the four million panels produced by Samsung. This report corroborates an earlier report from IHS iSuppli that blamed the iPad 2 shortage on an unknown manufacturing problem with LCDs.
LG has reportedly fixed this light leakage problem and is back on track to ramp up production this spring. Chimei Innolux is also prepping to contribute to the supply of IPS panels for the iPad 2 starting in May. If both these manufacturers can boost production, then perhaps iPad 2 supply constraints can be eased in this current quarter.