Pegatron and Quanta Computer will be the largest and second largest OEMs for high-end and mid-range notebooks launched by Asustek Computer in 2017, together accounting for 80% of all Asustek notebooks, according to Taiwan-based supply chain makers.

Taiwan-based Wistron and China-based BYD will undertake OEM production of the remaining 20% of Asustek notebooks, with BYD to produce entry-level models, the sources said.

Notebook vendors are increasingly willing to release ODM/OEM orders to China-based makers, but most are technologically incapable of meeting requirements for mid-range and high-end models, the sources indicated.

According to Digitimes Research, global notebook shipments will decrease to 150 million units in 2016 and further to 146 million units in 2017. Since business users have begun adopting Windows 10 and Intel's Kaby Lake platform a wave of replacement demand is expected in 2017.