Taiwan's semiconductor industry accounts for 10 per cent of the world's chipmaking capacity and about 80 per cent of the motherboards used in PCs, according to figures available with the Semiconductor Industry Association.Dealers in Mumbai were unable to give an exact picture of an impending price rise or a shortage in any particular hardware. "Before the holidays started, most dealers collected their consignments and it would be really difficult to predict any large price rise immediately," said one leading dealer.

Another dealer cited that due to the steady demand for PCs over the last few months, they had built up good stocks in most hardware. "Given the fact that MNC PC makers have strong supply positions, I don't think there would be any sudden spurt in prices," hesaid.

According to Merrill Lynch, assuming that no more significant structural damage occurs, between one and two weeks of production will either be lost or scrapped.

However, stoppage of production for more than a week may lead to an increase in worldwide prices, analysts feel. Prices on the chip spot market have been rising in the last two months because of a general short supply and high demand, and analysts say the disruption in Taiwan could drive them even higher.

Nasscom figures have shown that the PC manufacturing and sales have been on the rise in India in the last few months.