Just yesterday, DigiTimes reported that Foxconn along with Pegatron will be manufacturing partners with Apple for iPad 3 production. And today, Japanese website Macotakara is reporting that the two companies have start production of the next generation iPad. Macotakara posted:

According to Chinese source, Foxconn Technology and Pegatron Technology started next generation of iPad assembly with Foxconn bearing 85% and Pegatron taking 15% of the production load like as iPhone 4S. Accelerated schedule is made possible by earlier Chinese New Year festival, 23rd-28th January.

This first lot production implements LCD's, which are produced by Sharp Electronics Corporation, and aims to be shipped at early March, source told.

This source confined additionally, shape of Dock connector will be same with iPad 2. Position of hardware buttons and camera are same too as reported by iLounge. I think this new iPad may be called iPad 2S instead of iPad 3.

All indications/rumors are now pointing to a March launch for upcoming iPad 3. The rumored specifications for the new iPad 3 are ultra resolution display, quad core A6 processor, better cameras and faster graphics. Design-wise, internally everything will change, but externally iPad 3 will be very similar to iPad2.