What is the expected increase in prices for AEIS's products in 2021
ighly invasive procedures. The reason we acquired Versatile Power was to accelerate our time to market, right.
They are a bona fide player supplying RF power supplies for one of the leading companies in the world in these procedures. And now as a result of this acquisition, they brought us the scope and we bring them the scale to accelerate the growth and to leverage on the global infrastructure that AE has.
In general, industrial, you should expect to see our business operating and growing at GDP plus. As we said earlier, we are pursuing a portfolio optimization strategy that is a combination of, in some areas, terminating end-of-lifing products; in some other areas, increase prices; in some other areas, shifting the focus to higher value-add products, so that the mix will result in shifting of the gross margin bell curve to the right. And we are making great progress.
The area that we mentioned earlier today in telecom and networking is an area that is more of a focus area in 2021, although our strategy is to grow across the board implementing a classical 80/20 process to weed out, as I call the, not-very-healthy products and continue to shift to high-value solutions. Did I miss anything, Tom?
Tom Diffely -- D.A. Davidson & Co. -- Analyst
No, that's helpful. Maybe just as a quick follow-up. Paul, can you give us a feeling for how much lingering costs there is from COVID, both in your OpEx and maybe even in your supply chain?
Paul Oldham -- Chief Financial Officer and Executive Vice President
Yeah. We've talked about that kind of running in the 50 basis points range. And it bounces around a little bit more, a little bit less. As I mentioned in our prepared remarks, we are seeing some headwinds on supply chain costs, specifically related due to higher global demand and in part due to the fact that COVID still has many suppliers running below full capacity. So it continues to be a bit of a headwind for us in that range.
Tom Diffely -- D.A. Davidson & Co. -- Analyst
Okay, thank you.
Yuval Wasserman -- Chief Executive Officer and President
Yeah.
Operator
Your next question is from the line of Quinn Bolton of Needham & Company.
Quinn Bolton -- Needham & Co. LLC -- Analyst
Thanks for taking my question, and Yuval, congratulations on your retirement and thanks for your leadership over the past several years. Paul, wanted to start with you on your comments about the costs in the supply chain, potentially some shortages. Wondering if those component shortages are limiting your ability to meet demand in the first quarter? Or is your operations team able to get all of the semiconductor components you need for the power supplies to meet customer demand? And then I've got a follow-up question.
Paul Oldham -- Chief Financial Officer and Executive Vice President
Yeah. I think when we talked about the guidance, we tried to be pretty open that our demand continues to be strong. But we do see risks in the operations around the supply chain, just getting enough parts. Obviously, that's something you're always dealing with, and we continue to deal with. It's a daily battle. But we've tried to have our guidance reflect the environment we're operating in, which it's not us. It's a broad set of -- it's a broad problem across the microelectronics industry and electronics industry. And in the near-term, we think that will impact our ability to ship product. And that's contemplated in the numbers we put out.
Yuval Wasserman -- Chief Executive Officer and President
So the forecast and the guidance are risk-adjusted to reflect that, Quinn. And we have the benefit of reporting later in the month. So we have, I think, a better visibility in what's happening in the market. And it's not across everything in the supply chain. It's really a few components, just a few components, IC components that affect us, the automotive industry, and other industries. Obviously, you need all the bonds [Phonetic] to be able to build a product. So the good news, we have really strong demand. And as I said earlier, our semi demand is growing in Q1, and we expect it to a
ighly invasive procedures. The reason we acquired Versatile Power was to accelerate our time to market, right.
They are a bona fide player supplying RF power supplies for one of the leading companies in the world in these procedures. And now as a result of this acquisition, they brought us the scope and we bring them the scale to accelerate the growth and to leverage on the global infrastructure that AE has.
In general, industrial, you should expect to see our business operating and growing at GDP plus. As we said earlier, we are pursuing a portfolio optimization strategy that is a combination of, in some areas, terminating end-of-lifing products; in some other areas, increase prices; in some other areas, shifting the focus to higher value-add products, so that the mix will result in shifting of the gross margin bell curve to the right. And we are making great progress.
The area that we mentioned earlier today in telecom and networking is an area that is more of a focus area in 2021, although our strategy is to grow across the board implementing a classical 80/20 process to weed out, as I call the, not-very-healthy products and continue to shift to high-value solutions. Did I miss anything, Tom?
Tom Diffely -- D.A. Davidson & Co. -- Analyst
No, that's helpful. Maybe just as a quick follow-up. Paul, can you give us a feeling for how much lingering costs there is from COVID, both in your OpEx and maybe even in your supply chain?
Paul Oldham -- Chief Financial Officer and Executive Vice President
Yeah. We've talked about that kind of running in the 50 basis points range. And it bounces around a little bit more, a little bit less. As I mentioned in our prepared remarks, we are seeing some headwinds on supply chain costs, specifically related due to higher global demand and in part due to the fact that COVID still has many suppliers running below full capacity. So it continues to be a bit of a headwind for us in that range.
Tom Diffely -- D.A. Davidson & Co. -- Analyst
Okay, thank you.
Yuval Wasserman -- Chief Executive Officer and President
Yeah.
Operator
Your next question is from the line of Quinn Bolton of Needham & Company.
Quinn Bolton -- Needham & Co. LLC -- Analyst
 Thanks for taking my question, and Yuval, congratulations on your retirement and thanks for your leadership over the past several years. Paul, wanted to start with you on your comments about the costs in the supply chain, potentially some shortages. Wondering if those component shortages are limiting your ability to meet demand in the first quarter? Or is your operations team able to get all of the semiconductor components you need for the power supplies to meet customer demand? And then I've got a follow-up question.
Paul Oldham -- Chief Financial Officer and Executive Vice President
Yeah. I think when we talked about the guidance, we tried to be pretty open that our demand continues to be strong. But we do see risks in the operations around the supply chain, just getting enough parts. Obviously, that's something you're always dealing with, and we continue to deal with. It's a daily battle. But we've tried to have our guidance reflect the environment we're operating in, which it's not us. It's a broad set of -- it's a broad problem across the microelectronics industry and electronics industry. And in the near-term, we think that will impact our ability to ship product. And that's contemplated in the numbers we put out.
Yuval Wasserman -- Chief Executive Officer and President
So the forecast and the guidance are risk-adjusted to reflect that, Quinn. And we have the benefit of reporting later in the month. So we have, I think, a better visibility in what's happening in the market. And it's not across everything in the supply chain. It's really a few components, just a few components, IC components that affect us, the automotive industry, and other industries. Obviously, you need all the bonds [Phonetic] to be able to build a product. So the good news, we have really strong demand. And as I said earlier, our semi demand is growing in Q1, and we expect it to a