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Labor & Material Shortages To Affect iPad Supply

by on May 12th, 2011

DigiTimes reports that Apple’s manufacturing partner Foxconn is experiencing shortages of both labor and material required for iPad production.

Apple is reportedly one of the many companies still attempting to secure component supplies after increasing supply chain tightness resulting from the Japanese earthquake.

Taiwan-based electronics manufacturing service (EMS) provider Foxconn Electronics (Hon Hai Precision Industry) is reportedly facing a shortage of both labor and materials at its plants in Chengdu, China, which is likely to affect shipments of iPad 2 and iPhone 4 orders in the second quarter…

According to the DigiTimes report, Foxconn had planned for 52 iPad production lines at its Chengdu plants. This works out to approximately 40 million manufactured units per year. With the reported component and labor shortages, this means that manufacturing may fall short of Apple’s current demands for 2.5 – 3 million iPad 2 units per month.

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