LGD, the leading supplier of LCD panels, appears to be having some manufacturing issues when it comes to the 9.7" LCD panels that are used in the iPad 2. After receiving several defective units, Apple has reportedly pulled them until the issue can be sorted out.

LGD fell 1 million units short of their projected estimate of panel shipments. These defective units could have a lot to do with that. It will no doubt continue affecting them until the issue is resolved.

In the mean time, Apple will continue using Samsung and CMI for iPad 2 LCD panels. Apple has also had their issues with Samsung as well. But if you're in a tight spot, I guess you do what you need to in order to meet demand in the mean time. Digitimes' source seemed certain that LGD would remain the top panel supplier if the issue was rectified.

Digitimes