vMacroeconomic uncertainty in 2005 has caused negative global PC market sentiment, yet pushed by notebooks, a global output of 180 million PCs with growth rate of 11.7% is expected  for 2005, higher than the previous expectation of 9.5% v v Key component shortage in 1H held back output,         but macro market continued rising driven by         high emerging market growth, stable US         market gains, and a boost in notebook volume         due to lower prices and wireless applications; in         2H, a growth rate of 11.9% YoY is expected due        to the busy season v v Taiwanese PC industry performance remains         strong; due to persisting orders from OEMs and         new channel clients, global desktop share of         total PC volume rose to 31% in 2Q; as         Japanese customers increase outsourcing         share, Taiwanese share of global         notebook shipments will rise above 80%;         Taiwanese server shipment share to grow to 34% v Taiwanese desktop industry volume in 2Q         reached nine million units, 13.0% higher YoY;         output of 10.1 million in 3Q is anticipated, 11.9%         higher sequentially v v Motherboard output in 2Q reached nearly 33         million units, growing 6.1% YoY because of         emerging market demand; volume of 144.2         million with a growth rate around 5% is expected         for global motherboard industry in 2005 v v For notebook market, desktop replacement         effect remained and strategy of international         first-tier brands to gain market share; in 2H,         macro market will keep growing as         international brands price aggressively and is        further fueled by WLAN and desktop replacement v v Slow server market growth was seen in 1H 2005         due to rising company demand; in 2H, an upturn        in Europe and Japan markets is likely as the         market rebounds out of the slow 2Q and         companies?year-end purchase prompts         volume in 4Q; thus growth in 2H will rise greatly