Lenovo will further hike in-house notebook production and reduce orders to Taiwan-based ODMs in 2015, with total outsourcing orders to decrease by over three million units on year and the corresponding proportion of target shipments to slip from 50% in 2014 to 40%, according to Taiwan-based supply chain makers based on Lenovo's RFQ (requests for quotation) for 2015.

Lenovo will increase in-house production of consumer notebooks from eight million units in 2014 to 9-10 million units in 2015, and business-use models, mainly ThinkPad series, from seven million units to eight million.

LCFC (Hefei) Electronics Technology, a joint venture established by Lenovo and ODM Compal Electronics, undertakes Lenovo's in-house production, the sources said. LCFC shipped 15 million notebooks in 2014 and is expected to ship 20 million units in 2015, the sources noted.

Through its joint-venture relationship, Compal is expected to obtain more than 30% of ODM orders to be released by Lenovo for shipments in 2015, the sources indicated.

Lenovo's reduction in ODM production will enhance China-based component makers' competitiveness and consequently bring negative impact on the development of Taiwan's notebook supply chain, the sources said.