A rumor from Digitimes suggests Foxconn may not be able to fulfill Apple's upcoming orders for the iPad 2 and the iPhone 4. Sources from upstream component makers claim the Chinese company is facing a shortage of both labor and materials at its plant in Chengdu, China. This facility is one of several Foxconn locations that manufacture the iPad 2.
The bulk of the Apple's iPad supply still comes from the main Shenzen plant, but this slowdown at an auxiliary plant could prevent Apple from eliminating its iPad 2 backlog. Foxconn is reportedly assuring its customers that it will do all it can to meet its customer's orders and is working on rearranging its workforce to get back