With the increased demand for Apple’s iPad 2, Samsung and other suppliers have been forced to increase their capacity. For instance, Samsung, will now hire an additional 300 engineers and technicians for their semiconductor plant in Austin, Texas.

This move was reported by EETimes, which added that this is part of Samsung’s current expansion of $3.6 billion. According to EETimes sources, most of the production at the $300-million facility is commissioned by Apple. New employees will increase the growing number of employees at Samsung. Charmaine Winters, senior human-resources manager at Samsung Austin Semiconductor said proudly that “in 2010 we hired more than 600 employees as part of the current expansion, bringing total employment to approximately 1700.”

Although there were rumors suggesting that Apple might make a deal with the Taiwan Semiconductor Company for the A5 chip, they are still manufactured by the Korean electronics giant. Moreover, Apple is willing to spend $7.8 billion worth of components from Samsung in 2011 including liquid crystal displays, mobile application processors and NAND flash memory chips, making Apple the largest customer of Samsung.

In addition, The Economic Daily News claims that the number 4 LCD maker, AU Optronics, has received an order for LCD screens for iPad 2. The news comes straight after details of the high demand for iPad 2, which even now has customers forming queues in front of the magazines who have the most wanted magical device, and the positive responses to the iPad 2 which made several analysts rethink and increase their sale forecast – Charlie Wolf, of Needham & Company, increased his projection of iPad sales for 2011 from $20 million to $30 million. “Attempting to forecast the growth trajectory of a new category of computers is difficult, if not perilous,” Wolf wrote. “However, the launch of the iPad 2 so far exceeded our expectations that it was evident our 2011 and 2012 shipment forecasts were dramatically low.”