Looking at developments in the global PC market in 2006, growth momentum was still largely contributed by notebook PCs, as their efficiency was enhanced and the price gap between notebook and desktop PCs decreased. Therefore, demand for desktop PCs in the global consumer market was weakened by the continuous manifestation of the replacement effect. Nevertheless, as major international brands increased their market share and also increased the share of production outsourced to Taiwanese makers, Taiwanese desktop PC shipment volume reached 41.3 million units in 2006, representing an annual growth rate of 6.4%. This report will analyze key industry trends in the past several years and examine the development of the Taiwanese desktop PC industry in 2007.