Research company Gartner claims the cost of semiconductor components in computers is set to rise this year by 2.8 percent, after dropping by an annual average of 7.8 percent since 2000.
Due to the financial crisis many component makers were afraid to go ahead with their investment plans, capacity didn't increase enough and lack of supply is expected to push prices higher this year. Especially DRAM and LCD displays will be hit hard, Gartner predicts DRAM chip prices may soar 23 percent while LCD panels may go up 20 percent. Other components that face short supply are hard disks and optical drives.
The cost of flat-screen monitors was expected to increase by about 20 per cent this year because of shortages, Mr Lee said. Other components in short supply include hard drives and optical disc drives.
The shortages are part of the aftermath of the financial crisis, which led many component makers to delay investment plans. While capacity building resumed late last year, it usually takes at least a year before new factories come on line.
This problem is particularly acute in the D-Ram industry, which is in the middle of migrating from second to third-generation chips, called DDR3 chips.