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IC, component shortage likely to last through 2010 Written by Global Sources editorial team

Fears of a double-dip recession are keeping suppliers from boosting output significantly to meet growing demand. Hoarding and speculation exacerbate the deficit.

The shortage of ICs and components is slowing production and raising costs at China factories. Delivery schedules to finished product companies have been pushed back six to 10 weeks, while quotes have increased by an average 10 percent. Some ICs have even become six times more expensive. The situation, however, is not likely to be resolved soon.

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