A global shortage of laptop batteries is eating into sales of microchips and other components, a financial analyst working in the microchip sector has said.
The shortage was caused by a fire at Korea's second-largest computer battery maker March 3. The company said its plant will return to production in two to three months.
Jefferies & Co. analyst John Lau is the latest financial analyst to warn that the shortage is having a negative effect on chip makers, as some manufacturers' computer production has slowed down.
Lau made his comments in a note to investors after meetings with Taiwanese component makers.
The battery shortage is particularly important in the chip sector as Intel Corp. prepares to launch its Montevino chip series for notebook computers.
Intel shares fell 38 cents to $23.71 in afternoon trading.
Lau estimated that overall notebook chip production is expected to be up 6.9 percent this quarter but said it would have been stronger had it not been for the battery shortage.
The fire at LG Chem's plant has already caused a slowdown at Asustek Computer, Taiwan's second-largest personal computer maker.
Lau said in an interview that notebook chip growth could have reached 10 percent in the second quarter had it not been for the fire.
"Manufacturers are dealing with it and finding alternative sources, so most will be fine," he said.
One LG customer, Dell Inc., has already said that it is working with other computer suppliers to limit price increases to the consumer.
Dell has been affected more than most computer manufacturers and the effect could last into the third quarter, according to at least one analyst.
However, the company disagrees and said it expects the shortage to have only a minor effect this quarter.
Terms & Conditions
RSS Headlines
Fool UK