Supply problems in some areas appear to have been sorted out, but other product lines are feeling the pinch from demand exceeding supply. Most notable among the undersupplied is the thin-film transistor liquid-crystal display industry, which is still adding capacity and expects to see more volume brought to the market in the second half of the year. With big names such as BenQ and Sampo focusing heavily on flat-screen televisions and monitors, and prices and quality having tipped in favour of consumers, all indications are that this will be a bumper year for those particular products. But the sticking point could be the supply of LCD panels and related components, which appears to be insufficient now and will probably lead to an increase in component prices towards the end of the year. Whether that leads to an increase in retail price will depend on individual company strategies. Taiwanese LCD monitor shipments grew 72 per cent last year, according to Taiwan's Market Intelligence Centre. Elsewhere on the Computex show floor, sales representatives were reporting a return in supply of flash chips and wireless LAN chipsets, both of which were in severe shortage in the second half of last year. Makers of thumbdrives, MP3 players and digital cameras last week reported la return in supply. The third quarter of last year saw demand far outstrip production capacity, with key manufacturer Samsung having shut off supply to many small Taiwanese thumbdrive and MP3 makers in favour of suppling their chips to digital camera makers. With the industry now facing oversupply and flash prices falling, Transcend Information account manager Ivy Wu said the company had no problem procuring enough flash chips to meet its needs. The firm makes thumbdrives and sources its chips from Samsung. On the wireless front, wireless LAN equipment maker Z-Com lost out on sales of 100,000 units, from about 1.5 million, of its modules and finished products in last year's fourth quarter because it could not secure enough 802.11g chipsets, Z-Com sales manager Uliya Liao said. Increased production of 802.11g chipsets has driven prices down to by as much as 15 per cent, and manufacturers reported no problems in securing components.