Asustek Computer and Huawei are expected to shift more of their existing orders for notebooks and smartphones away from China-based BYD, which is having a difficult time fulfilling its promises in product quality and shipment schedule to the clients, according to sources from the upstream supply chain.

The sources added that these orders are expected to be shifted to Taiwan-based ODMs including Foxconn Electronics (Hon Hai Precision Industry), Pegatron Technology and Quanta Computer.

However, these companies declined to comment on their orders.

The sources pointed out that Foxconn has been aggressively looking to further tighten its partnership with Huawei and the China-based vendor is likely to outsource more orders to Foxconn due to BYD's issues.

Although China-based makers have advantages in costs, issues over quality and delivery schedules are starting to prompt clients to resume their partnerships with Taiwan-based makers.

Asustek is planning to shift its notebook orders back to Taiwan ODMs, but some of its smartphone orders are expected to stay with China-based makers since the company's smartphones are mainly targeting the entry-level market and cutting costs is still the priority, the sources added.