Contents:

- EXECUTIVE SUMMARY - INTRODUCTION Taiwan-based supplier demographics Mainland China-based supplier demographics Manufacturing capability Export capability Product and price trends Supplier survey — overall market projections, Taiwan output and export projections, Mainland China output and export projections, price projections - SUPPLIERS AT A GLANCE - SUPPLIER PROFILES Manufacturing capability Product and price trends Popular export models - SUPPLIER TABLES - PRODUCT GALLERY Smart phones WI-FI phones 3G phones PDAs & pocket PCs Webpads WLAN APs, gateways and routers WLAN cards and adapters - SUPPLIER CONTACT DETAILS

Summary:

In 2005, makers of mobile voice and data communication products in Taiwan and mainland China will account for at least 64 percent of the projected worldwide shipments of a minimum of 125.72 million units, excluding PDAs and smart phones. The projected export volume from Taiwan and mainland China for 2005 is 80.20 million units. This will comprise mobile phone products such as smart phones, Wi-Fi phones and 3G phones, as well as WLAN routers, gateways, access points (APs), cards, and combination GSM and WLAN devices. The trend toward converging wireless and mobile technologies will continue to spur growth in Taiwan and mainland China. Makers' efforts toward building support technologies for mobile data on top of voice-centric applications will fuel product development through 2006 and 2007. This report covers 32 manufacturers of mobile voice and data communication products: 19 from Taiwan's more than 50-maker supplier base and 13 from mainland China's supplier base of 30 to 40 makers. The profiled companies' combined output volume in 2004 was 64.66 million units. Exports accounted for 74 percent or 47.68 million units. The forecast output and export figures for 2005 are 102.60 million units and 80.20 million units, respectively. Manufacturing centers - About 60 percent of the companies in this report are based in Taiwan. The rest are based in mainland China. - At least 50 percent of the profiled companies manufacture their mobile voice and data communication products in mainland China. - More than 30 percent of the companies have factories in both Taiwan and mainland China. - Taipei is the key production center for mobile voice and data communication products in Taiwan. - In mainland China, the key production center is Guangdong where more than 75 percent of companies in this report have factories. Production Taiwan-based companies produced at least 44.18 million units in 2004. This will increase by 69 percent to reach 74.45 million units in 2005. Mainland China-based companies manufactured at least 20.48 million units in 2004. Their projected output in 2005 is 28.15 million units, a growth of 38 percent.

Sample

AboCom Systems Inc. Established in 1995, AboCom Systems Inc. has been publicly listed company on the Taiwan Stock Exchange since 2000. The company began as a manufacturer of data communication products for the mobile and SOHO markets. AboCom's extensive product line now includes Wintel-based products such as Internet appliances (IAs), high-speed Internet access products, WLAN devices and storage products. In July 2004, AboCom received major orders from YahooBB for USB 802.11g dongles. The company recorded US$126.7 million in revenue from all products in 2004, of which 68 percent - or US$86.2 million - came from exports. In terms of markets served, 32 percent of output went to the domestic market, 45 percent to Japan, 14 percent to North America,and 9 percent to Western Europe. AboCom's wireless products, such as WLAN, Bluetooth, wireless Ethernet, and smart display devices, generated an annual revenue of US$33.74 million in 2004, equivalent to 27 percent of the total for the same year. Storage products accounted for 33 percent share. Exports generated 68 percent of total wireless sales in 2004 with a value of US$22.94 million. In 2005, AboCom expects exports of WLAN units to increase to 4.7 million units. The company will also increase its exports of Bluetooth devices, wireless Ethernet units, and smart displays. Offering both OEM and ODM services to foreign clients, AboCom has been recognized by Microsoft as a gold-level ODM partner. In order to develop its overseas business, the company actively attends international trade exhibitions such as Computex. The company has marketing offices in Taipei and Texas, United States. AboCom plans to strengthen its relationships with its first- and second- tier ODM customers in Asia, specifically in Japan and mainland China. Simultaneously, AboCom plans to expand its marketing in the European market. To complement this, the company will also expand its presales and aftersales support services. Manufacturing capability AboCom is based at the Hsinchu Science-based Industrial Park in Taiwan. The company maintains a 40,000sqm factory in Miaoli, Taiwan. The factory is a 30min drive from south Hsinchu. To expand production without increasing labor costs, AboCom invested US$12.4 million in new production equipment in 2004. The factory carries ISO 9001:2000 and TL 9000 certifications, assessed by the SGS International Certification Services.