Letter To Shareholders - Mitac

(4) Enterprise and channel servers/ workstation products
‧High-performance servers/ workstation (four-socket or eight-socket HPC server/
workstation)
‧R&D of high-density servers
‧Blade servers
‧Technologies for storage devices
‧ODM server/ workstation platform development and production
‧Cloud computing server development.
7.5.5. The impact of major changes in domestic or foreign government policies and laws in
recent years on the company’s financial condition and business, and our countermeasures:
None.
7.5.6. Technology changes and industry changes in the most recent year and the impact on
the company’s finances and sales, and our countermeasures
1. Client system business products:
Due to the intense competition and the rapid price decline in computer hardware, our
countermeasures are to develop lower-cost products and to speed up the development
for new products, and to increase the differentiation in products and shorten the time
needed for mass production.
Also, to deal with the economic recession, we will continue to lower production costs
and differentiate our products, increase added-values for understanding users’ needs
and shorten the time needed for mass production.
2. Enterprise products:
Due to the recession, enterprises generally invest less in technologies. As a result,
each single product contributes less to our revenue. In addition, vendors are cutting
prices in order to obtain more orders, thus putting pressure on profit margins. Therefore,
we need to use more R&D workers to devote to new product projects in order to
achieve the same level of revenues and profits as in the past. The invention of
high-density server products should increase average per-unit prices and production
value.
3. Mobile communication product series:
The focus of mobile communication technology development is shifting towards
energy-saving, highly integrated functions, and faster data transmission speed; whereas
the focus of product development is shifting towards portability, fashionable design,
quality finish, and simplified operational interface. Combined with advanced
technologies, the industry has set goals to accomplish absolute wireless connection,
hands free, and voice recognition. The company plans to integrate wireless broadband
technologies into future handheld devices, research and develop duplex communication
to embrace the unlimited opportunities of connected digital services.
4. Enterprise and channel server/ workstation products:
The hardware and software technology of the server industry is constantly improving.
CPUs used in servers evolved from dual core, 4-core to 6-core or even 12 –core; the
production of which also improved from 65 nm, 45nm, to 32nm while memory
modules expanded from 1GB to 16GB with DDR III standard. GPUs that deliver faster
performance than CPUs have also become available; combined with the rapid growth
of the cloud computing industry, the server industry is attracting competition from IT
participants around the world. How a company maintains a stable working relationship
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