***Taiwan Produces 101 Million Motherboards

According to the Market Intelligence Center (MIC), the total
motherboards produced in Taiwan could reach 101 million units out
of 120 million in the global market resulting in an 84% worldwide
share in 2000. Top Taiwanese motherboard makers are Asustek,
Gigabyte Technology and Micro-Star International. These companies
also produce motherboards for their OEM clients such as HP,
Compaq, Actebis, Fujitsu and many others.

MIC predicts that the local industry's growth will drop from 21%
in 2000, to 13.1% in 2001, as the high market share hinders
further expansion. Taiwan's overseas production though, is
rising, from 44% in 1999 and 48% in 2000 to an expected greater
than 50% for 2001.

The margin of profit is getting smaller as the average price of
motherboard, US$85 in 1999, dropped to US$73 in 2000. In order to
maintain competitiveness, these motherboard makers like Asustek,
Gigabyte Technology and Elitegroup Computer Systems are moving
their production facilities into China to further reduce
production cost and increase motherboard output demand.

Wave Issue 0102 1/9/01 Article 4-01