WLAN makers had a strong second quarter. Network interface cards (NIC) shipments rose 18% to 20.19 million units amid strong demand from the notebook sector. Wireless routers (WR) integrating other telecom functions snatched up much of the market from access points (AP), and most of the APs shipped in the first two quarters were models for outdoor use.

Despite the tight supply of Intel chipsets, the worldwide notebook market continued to grow in the second quarter. With its domination of the worldwide market, Taiwan shipped 11.48 million notebooks in the second quarter, up 54% on year and 16% on quarter

Taiwan’s DSL shipments in the second quarter of 2005 increased 4.4% sequentially on growing demand in the worldwide broadband market. Shipments reached 9.78 million units, but as a result of fierce pricing, the second-quarter production value decreased US$3.8 million to US$295 million.

Taiwan’s digital still camera (DSC) makers enjoyed a strong second quarter because of seasonal effects and increased outsourcing from Japanese vendors. The shipments reached 7.19 million units, up 36% on year, and 43% on quarter, with five-megapixel models dominant.

Taiwan’s handset shipments in the second quarter of 2005, chiefly buoyed by the outputs of Compal Communications and Arima Communications, rebounded from the slumps of the first quarter to record more than 20% sequential growth.

With an over 80% share of the fast-growing worldwide xDSL market, Taiwan makers’ shipments in the first quarter of 2005 reached 9.38 million units, registering a higher growth rate than the world’s average. However, the growth in volume did not translate into value increases because of fierce pricing campaigns. The first-quarter production value dropped US$8.2 million sequentially to US$299 million.

Thanks to increasing orders from US and Japan vendors, Taiwan’s digital still camera (DSC) shipments in the traditional first-quarter low season dropped only a meager 1% sequentially. The volume represented 9% on-year growth.

Bidding farewell to the low season in the first quarter of 2005, Taiwan’s notebook sector expects a shipment rebound in the second quarter to set a quarterly record of 10.91 million units and on-year growth of 47%. The on-quarter growth will stay at 10%, similar to the second-quarter levels for the previous two years.

Taiwan’s first-quarter handset shipments dropped 14.8% to 15.67 million units from 18.38 million units in the previous quarter mainly due to seasonal factors. Production was unsurprisingly reduced in the wake of the Christmas shopping season and with the long Chinese New Year holiday in February. The launch of fewer new models than the fourth quarter, because of the same seasonal factors, also contributed to the decline.

The departure of several minor optical disc drive (ODD) players in Taiwan during the second half of 2004 has resulted in a significant decline in shipments. Taiwan’s ODD shipment for the first quarter of 2005 dropped to 25.23 million units, down 7.1% on year and 8.5% on quarter.

Taiwan's overall first-quarter WLAN equipment shipments dropped 9% sequentially to 21.87 million units due to seasonal effects. However, not all WLAN segments shipped from Taiwan �V network interface card (NIC), access point (AP), and router �V were in decline.