I have a similar issue but try this before assuming the worst (hardware trouble). Next time you drop connection to your router from the iPad go to General settings and reset the network connection- it'll reboot the iPad. Try to reconnect- does it work now? If not it just might be hardware.
Mine is fixed up after a reset, but the problem likely to return.. usually happens after any app update downloads and simultaneous YouTube use. I haven't the patience to blow it away and reload everything.