The China supply chain has reportedly entered the notebook cooling module industry recently and is set to expand their supply to notebook brand vendors in 2014, according to sources from the upstream supply chain.

　　Prior to the cooling module industry, China's supply china has been expanding its presences in the notebook components such as for connectors, cable and touch panels and with aggressive moves, its influence in the notebook industry is gradually widening.

　　In the past, Taiwan makers' cost advantage, as well as the support of Acer and Asustek Computer's helped Taiwan component makers dominate the notebook industry, but as the China government has been subsidizing local players to acquire technologies for semiconductor, panel, memory, processor, battery core as well as connector and cable applications, so now China suppliers are gradually surpassing Taiwan makers.

　　With Lenovo having raised its in-house notebook production rate and China-based ODMs trying to enter the notebook industry, Taiwan component makers are seeing their orders drop rapidly. Acer has also recently started considering outsourcing its orders to China ODMs to lower its costs, the sources noted.

　　The sources pointed out that China suppliers' quotes are 30% less than those of Taiwan suppliers, but the quality is not much worse and is still improving.

　　Japan-based cooling module maker Furukawa Electrics has reportedly outsourced some of its orders to China-based makers recently and is expected to help China-based makers to achieve further advantages in the competition, the sources said.

　　China-based cooling module makers such as Inhere and Tong Shi are strong competitors of Taiwan makers. Facing the competition, Taiwan makers are turning to push products for mobile devices such as smartphones to gain profits; however, only a few players such as Sony and NEC have adopted the cooling modules for their devices, the sources added.