With notebooks becoming the choice replacement for desktop PCs, Taiwan’s 14 notebook makers shipped a total of 15.31 million units in the fourth quarter of 2005, climbing 14% from 13.38 million units in the third quarter and up 41% on year.

The growing penetration of built-in wireless LAN (WLAN) capability in notebooks, together with the absence of a new standard, jointly constrained the growth of WLAN equipment shipments below the more than 100% on-year growth rate that Taiwan witnessed in 2004. DigiTimes Research estimates that the annual shipment of network interface cards (NICs) from Taiwan grew 68% on-year to 90.7 million units in 2005, while shipments of wireless routers grew 66% on-year to 26.1 million units, thanks to year-end demand.

While worldwide shipments increased, Taiwan’s optical disc drive (ODD) shipments dropped 6.3% to 103.5 million units in 2005 after the departure of a number of smaller players. In 2006, worldwide ODD shipments will grow 4.7% to 281.7 million units, driven chiefly by DVD burners and notebook-use slim models.

DigiTimes Research estimates that, not including shipments from Foxconn International Holdings (FIH) and Siemens, Taiwan-based mobile phone manufacturers shipped 23.17 million mobile phones in the fourth quarter of 2005. The shipments, beating the 20 million mark for the first time, achieved sequential growth of 28.4% and an on-year increase of 26%.

In 2005, Taiwan’s digital compact camera manufacturing sector rebounded from a miserable 2004 to enjoy 48.2% on-year shipment growth. The strong growth was the result of increased outsourcing from international brands amid declining prices in a maturing market for digital compact cameras. The year 2006 promises strong growth for both the global market and Taiwan maker’s shipments.

With notebooks fast replacing desktop PCs, Taiwan’s 14 notebook makers shipped a total of 13.55 million units, up 52% on-year in the third quarter of 2005. While Taiwan’s major makers have raised their goals for the entire year, they are generally a little conservative about the fourth quarter since vendors are trying to reduce the risk of inventory pile-ups for older models ahead of Intel’s expected launch of its NAPA platform early in 2006.

Taiwan’s DSL equipment shipments showed an 8.7% sequential increase in the third quarter to 10.64 million units. However, a 12.7% decline in average selling prices (ASP) resulted in a slight drop in production value to US$292.5 million, from US$295.3 million in the second quarter.

In the third quarter of 2005, WLAN equipment makers saw shipments of network interface cards (NIC) rise 26% sequentially to 25.45 million units. Shipments of wireless routers (WR) and access points (AP) grew just 1.5% to 6.67 million units.

Optical disc drives (ODD) makers experienced a sequential shipment growth of 11% to 27.77 million units in the third quarter, during which worldwide shipments increased 6%. As a result, Taiwan’s worldwide market share rose two percentage points to 39%. Lite-On IT and Quanta Storage were the chief contributors to the sector’s robust growth.

Digital camera makers enjoyed a strong third quarter due to seasonality and increased outsourcing from Japanese and US vendors, with shipments rising 49.9% on-year to 8.72 million units. Higher-end models accounted for more of the output with over 50% of shipments belonging to the 5-megapixel-and-higher segment, and over 73% equipped with optical zoom lenses.

Taiwan's handset makers shipped 18.55 million units in the third quarter. The sequential growth was flat at only 3.5%, but compared to a year ago, shipments increased by 58.3%. The makers have seen two consecutive quarters of more than 50% in on-year shipment growth because of increased outsourcing from international vendors, particularly from Motorola, for low-cost models.

Taiwan's optical disk drive (ODD) shipments, including label deals with Japan vendors, decreased 5.1% sequentially to 24.98 million units in the second quarter chiefly because the largest maker, Lite-On IT, reduced output while adjusting inventories. Taiwan's ODD makers will increase their output in the second half to meet fourth quarter demand.