Gigabyte Technologies has officially announced that it will start shipping low-cost PC computers in June. According to company's vice president, Richard Ma, the first model of the Gigabyte low-cost computers will be built using Intel's upcoming Shelton platform and will sport a 7- to 9-inch LCD display.

Before launching the first low-cost PC, Gigabyte will introduce the company's first mobile Internet devices (MID), powered by Intel's Menlow architecture and the ultra-mobile PCs that are expected to arrive in April. Once the notebook and portable devices businesses are secured and profitable, the company will focus on developing its low-cost, low-end personal computers.

Gigabyte refused any interested partners to join its cheap PC business. Ma claims that Gigabyte will design and manufacture the low-cost PC inside its production units with its own staff. He also detailed that Arima Computer will be the OEM for UMPC production, while Compal Electronics and Quanta Computer will distribute its notebook products.

One of the most important aspects in designing and building ultra-mobile PCs is fighting the LCD panel shortage. As almost every mature manufacturer of personal computers has its own line of ultra-mobile PCs (guess what...) featuring the exact 7- to 9-inch LCD panel, the LCD manufacturers are likely to run out of stock. Ma said that the company would not encounter such shortages, but the 4- and 15-inch panels are likely to become extremely rare this year.

Although the Gigabyte is planning to focus on the notebook sector, the desktop PCs are facing increased demand, too. This is good news for the company, as it is one of the largest motherboard and graphics cards manufacturers. Company officials estimate that shipments of motherboard and graphics cards will increase by 10 percent during 2008.