According to MIC (Market Intelligence Center, Taiwan), an ICT industry research institute based in Taipei, the desktop PC replacement effect and the possible impact of global stagflation on demand in emerging markets will be two major factors affecting Taiwanese desktop PC contract production volume in the second half of 2008. It is expected that the Taiwanese desktop PC industry's shipment volume will reach 12.38 million units in the third quarter of 2008. Stimulated by the increase in shipment volume, Taiwanese desktop PC shipment value is expected to reach US$3.60 billion.

According to MIC forecasts, shipment volume in the third quarter will be stimulated by the back-to-school effect, increasing demand in China and improvements in supply-and-demand issues related to crude oil and staple foods. This is expected to lead to a rebound in orders for Taiwanese manufacturers, enabling the industry to post a small sequential increase in terms of shipment volume in the third quarter.

Taiwanese desktop PC shipment volume in the second quarter of 2008 fell 9.3% year-on-year to approximately 10.55 million units. Shipment value fell 9.7% year-on-year in the second quarter, reaching approximately US$3.06 billion. According to MIC, although Taiwanese shipment volume share of total global production continues to grow, Taiwan's industry was impacted in the second quarter by worldwide inflation, the rapidly narrowing gap between notebook PC and desktop PC prices and lower-than-expected demand in emerging markets.

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