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1.1.3 New Products and Technologies Planned for Development<br />

(1) Desktop Computer Products<br />

- Personal computers with integrated digital AV capabilities, diversified styling and<br />

applications<br />

- Personal computers integrating home electronics products<br />

- Personal computers integrating wired and wireless networking capabilities<br />

- High-performance low-cost dual-processor workstations<br />

(2) Server product series<br />

- High-performance workstations based on RISC/CISC processors<br />

- Development of high-performance servers<br />

- Development of ultra-dense servers<br />

- Development of telecommunications servers<br />

- Development of storage device technologies<br />

(3) Wireless Communications Products<br />

- Technologies for integrating computers and telecommunications<br />

- Integrate data retrieval, voice, and wireless broadband communications<br />

- Extensions of Internet-centric devices merging PCs and information appliances,<br />

with integrated telecommunications and storage technologies<br />

- Technology related to multimedia applications<br />

- Development of wireless communications and networking technologies<br />

- Research in wireless communications equipment technology<br />

- Research in the developments in new digital media, seeking in the process new<br />

business opportunities and development of related products<br />

- R&D for operating systems and application software<br />

- Development and application of virtual reality software<br />

(4) Other<br />

- Ultra-dense, high-frequency electronic architectures and associated automated<br />

production and testing technologies.<br />

- Defect-free manufacturing (DFM) product design.<br />

- Product design and manufacturing technologies for satisfying environmental<br />

protection requirements and ISO standards.<br />

- High-speed PC architectures and heat flow technologies.<br />

1.2 State of the industry: the discussion below is limited to the three main product lines<br />

1.2.1 Desktop computer product series<br />

(1) Due to the effect of replacement by notebook computers, desktop computer growth<br />

has slowed somewhat.<br />

(2) The corporate market is saturated, with weak growth potential. The home market has<br />

far greater potential for growth.<br />

(3)Desktop computers for the home market are being repositioned, with less emphasis<br />

on computing power and increased stress on their suitability for multimedia<br />

entertainment and digital home applications. This has spurred the closer integration<br />

of regular PCs with the digital images, video, audio, and data on home electronics<br />

equipment, sparking a new wave of rapid growth.<br />

(4) With the difficulty of achieving substantial growth in global demand for desktop<br />

computers, price competition has become an important weapon for maintaining or<br />

expanding market share.<br />

(5) Pricing pressures are increasing on brand vendors. Taiwan vendors' low-cost contract<br />

manufacturing capabilities have been much in their favor, with the proportion of<br />

manufacturing outsourced by major brand vendors continuing to rise. Shipments by<br />

Taiwan vendors are likely to benefit as a result.<br />

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