Apple Looks to Taiwan for iPad 2 Panels

Apple is scrambling to retool its supply chain following this month’s devastating earthquake in Japan, searching out new suppliers to avoid running out of components as demand for the iPad 2 surges. Taiwan’s Economic Daily News reports that Apple has tapped AU Optronics as a secondary source of iPad displays, agreeing to pay a high premium to guarantee a steady supply. Sources say the deal will require about half of the capacity of AU’s fifth-generation plant in central Taiwan, which could end up producing 100,000 displays daily for Apple.