Shipment value grew 15.6% sequentially to reach approximately US$2.5 billion in the fourth quarter of 2003, 17.1% year on year growth. Furthermore, shipment volume drove shipment value to a record high, achieving a higher level of sequential growth than seen during the substantial quarterly gains evident in 1999 and 2000. ASP (Average Selling Price) declined 0.9% sequentially to US$276 in the fourth quarter as models shipped were extensions of third quarter product lines. Additionally, the arrival of the tail end of the peak season checked any price increases.

In the global PC market, notebook PC market share continues to increase while desktop PC growth is slowing down, rendering price competition a crucial measure to consolidate or to expand market share. Under intense pressure of low-price competition, Taiwanese makers have won orders through their low cost advantages. Under heavy pressure from erosion by notebook PC, desktop PC outsourcing share has steadily grown, bringing yet more contracts into the hands of Taiwanese makers.

Despite robust demand in the fourth quarter of 2003, makers are cautiously observing market developments and are not exceeding outsourcing quotas in the first quarter of 2004, which is leaving normal inventory levels in the channels. OEM customer demand will thus be closely correlated to that of the end-market, leaving only seasonal factors to impact volume. Taiwanese desktop PC shipment volume is hence anticipated to decline 8.8% sequentially to reach 8.2 million units in the first quarter of 2004.