Traditionally brisk sales during summer vacation, combined with stronger than anticipated demand in the Chinese market and European clone market, drove a 13.8% year on year increase in Taiwanese motherboard shipment volume to 21.7 million units in the second quarter of 2003. Falling 7.5% from the first quarter of 2003, the rate of volume decline was lower than the 13.3% forecasted during the height of the SARS epidemic.  

Taiwanese motherboard shipment volume rose 5.5% year on year to total US$1.3 billion in the second quarter of 2003, declining 8.7% sequentially. Average selling price (ASP) continued to drop, but at a much slower rate than seen previously, falling from 1.3% to US$60.0 in the second quarter. As makers made way for 865 chipsets, inventory clearances of 845 chipsets caused a fall in prices; however, with demand healthier than expected, price declines were slighter than the 4.7% sequential fall seen in the first quarter of 2003. 

Favorable response to new rollouts by OEM customers and unexpectedly robust demand in Europe brought about a 12.2% year on year increase in Taiwanese desktop PC volume, which hit 6.4 million units. Volume grew 0.5%, outperforming the global PC market in the second quarter of 2003. 

Taiwanese desktop PC shipment value grew 4.3% year and year and declined 11.5% sequentially in the second quarter of 2003, amounting to US$1.6 billion. In addition to a fall in motherboard and other component prices, second tier makers' share of half-system and barebones increased. ASP thus fell 11.7% from the first quarter of 2003 to US$264 in the second quarter.  

As the global economy leaves the US-Iraq war and the SARS epidemic farther in the past, the corporate market is gradually regaining an optimistic outlook on the economy in the second half of 2003. Consumer confidence indicators also rose in the major PC markets of North America and Europe in May and June, staving off IT expenditure cutbacks. Thus, with the traditional peak sales season during August and September in North America and Europe accompanied by the summer vacation demand in the Asia market, prospects for desktop PC volume growth are optimistic. 

Taiwanese motherboard makers are expected to move into mass production of 865 chipset motherboards, while brand-name desktop PC vendors successively complete development of new products slated for mass production in July and August. Price cuts by CPU makers and chipset suppliers are also likely to stimulate corporate replacement purchases. Combined with the traditional peak season in the second half, Taiwanese motherboard, barbone, and full system shipments are anticipated to grow 10% to 12% from the first half of 2003.