While notebook makers Quanta Computer, Compal Electronics, Wistron and Inventec have stepped into production of wearable devices, there is no role for battery pack, heat-dissipation module and hinge makers to play because smart watches and bracelets do not contain such components, according to supply chain makers.

Some research firms forecast that wearable device shipments will reach 19.2 million units in 2014 and grow over 500% to 111.9 million units in 2018, the sources noted.

Heat dissipation module makers encountered the same issue when they tried to enter the tablet and smartphone markets, but they have started gaining orders from tablet products recently thanks to technology that shrinks heat-pipe sizes to only less than 0.6mm, the sources said. However, orders for smartphones are still limited.

Since most wearable devices rely on smartphones for computing work, heat dissipation module makers are only seeing limited demand for their modules.

Hinge makers are also seeing weak orders from the wearable device industry. Some players such as Shin Zu Shing (SZS) are aggressively developing the metal injection molding (MIM) business, hoping to gain orders for wearable devices.