Taiwanese Notebook and Desktop PC Industries to See Growth in Second Half of 2007

According to MIC (Market Intelligence Center), an ICT industry research institute based in Taipei, in the second half of 2007 the Taiwanese notebook PC industry will continue to build upon the growth momentum generated in the first half of the year, and the Taiwanese industry's share of worldwide notebook PC production is expected to exceed 90% in the full year 2007. Taiwanese desktop PC shipment volume is expected to reach 11.7 million units in the third quarter of 2007, while Taiwanese motherboard shipment in the second half of the year is forecasted to amount to 84 million units. The server industry will benefit from the launch of new products by Intel and AMD.

In the first half of 2007, the Taiwanese notebook PC industry benefited from strong end-market demand, aggressive adjustments in product strategies by several branded vendors, and the increased share of new consumer functions. In the second half of the year, further growth is expected with the arrival of the peak season, with full-year shipment volume in 2007 expected to reach approximately 85 million units.

In the desktop PC industry, shipment of vendors such as Dell, HP, Acer was pushed by their new channel strategies and increasing demand in emerging markets. Taiwanese desktop PC contract makers also benefited from these developments, and Taiwanese desktop PC shipment volume in the second quarter of 2007 reached approximately 10.6 million units. Looking ahead to the second half of the year, prices of key components are expected to decline and demand in emerging markets will continue increasing. In the third quarter of 2007, as international brand-name vendors are expected to start preparing for the peak season, Taiwanese desktop PC shipment volume is forecasted to reach 11.7 million units.

Looking at the Taiwanese motherboard industry, the demand-side is pushing growth in the industry, as demand in emerging markets for desktop PCs is on the rise and as prices of CPUs (Central Processing Unit) and DRAM (Dynamic Random Access Memory) are relatively low. In the second half of 2007 the industry is expected to see growth due to the traditional peak season, the market launch of new products, and price declines of CPUs. It is expected that Taiwanese motherboard shipment volume will reach 84 million units in the second half of the year. As SMT (Surface Mount Technology) production lines can experience capacity shortages during the peak season, some first-tier vendors might seek capacity support from relatively small SMT makers in China. This is expected to lead to a small decline in the Taiwanese industry's share of worldwide production in the second half of 2007.

The Taiwanese server industry is feeling the effects of slowdowns in corporate IT spending and global economic indicators in 2007, which have affected the global server market. The industry was only able to maintain modest growth in the first half of the year. However, in the second half of the year, new product rollouts by companies such as Intel and AMD will provide a stimulus for Taiwanese server shipment.

http://mic.iii.org.tw/english