According to Market Intelligence Center (MIC), in the fourth quarter of 2005, shipment volume of the global motherboard industry hit 41.5 million units, up 7.6% year-on-year. Due to increased shipment share of value-line products by Taiwanese chipset makers, the resumed production of 865 series chipsets by Intel, and continuously growing demand for value-line models in emerging markets, motherboard ASP (Average Selling Price) dropped. Sustained by continuing growth in shipment volume, shipment value of the global motherboard industry reached US$2.3 billion in the fourth quarter, up 5.2% year-on-year.

The fourth quarter has been the traditional peak season for the PC industry. International brand vendors rolled out more value-line models than the same period in 2004, constituting the primary factor behind the growing demand in consumer markets. Besides increasing consumption in the North American market, some emerging markets, such as China and Central and Eastern Europe, saw continuous growth in demand for desktop PCs, driving shipment volume growth of the motherboard industry further.

Another factor behind the shipment growth in the fourth quarter is the relief of key component shortages. The rollout of new chipsets by SIS and VIA and the resumed production of 865 series chipsets by Intel solved fed some slack into chipset supply, which forced some motherboard makers to defer their shipment in the third quarter. Supply of other components, such as MLCC (Multilayer Ceramic Capacitors) and PCB (Printed Circuit Board), was still tight, but the effect on the overall shipment was limited.

In the first quarter of 2006, shipment in emerging markets is expected to grow further and some mature markets, such as Japan and Germany, will also see growth in consumer demand, due to an upturn in their economies. However, due to the reduction in actual working days, caused by the Chinese New Year holidays, the increased demand for 945 series chipsets by international brand vendors, and Intel's strategic reduction in 915 series chipset supply, provision of mid-range and high-end products by motherboard makers in the channel market is likely to be affected. Overall, shipment volume in the first quarter is expected to grow 5% year-on-year but plunge 11.4% sequentially. As shipment share of high-end models will slip, driving down ASP, shipment value is projected to reach US$2 billion, for slight growth of 3% year-on-year. For all of 2006, shipment volume is anticipated to hit 155.8 million units, for 6.3% annual growth, with shipment value rising 4.6% year-on-year, to US$8.5 billion.