Compal Electronics reportedly plans to expand its all-in-one PC business and is targeting to land 30% of Lenovo's total orders, as well as orders from Hewlett-Packard (HP), according to sources from the upstream supply chain.

Since HP's all-in-one PC orders are mainly outsourced to Quanta Computer, Foxconn Electronics (Hon Hai Precision Industry), Pegatron Technology and TPV-Inventa Technology, Compal's ambitions are expected to trigger fierce competition between the manufacturers.

In addition to notebooks and all-in-one PCs, Compal has also started becoming aggressive about competing for server and tablet orders with other ODMs, especially Quanta, the sources noted.

The sources pointed out that because the notebook industry is facing weakening growth, notebook ODMs have been seeking opportunities from non-notebook product lines, hoping to regain revenue growth.

With the launch of Windows 8, most market watchers have estimated that all-in-one PC shipments will enjoy a growth of more than 20% on year in 2013, compared to notebook's estimated growth of a single-digit percentage.