More China-based Internet service providers are looking to enter the local smartphone market later in the second half of 2015, according to sources at Taiwan's IC design houses.

Alibaba and Qihoo 360 will launch their own brand models in cooperation with handset makers, said the sources. As new entries in the local smartphone market, both Internet service providers will be gearing up for China's National Day holiday in October and Single's Day promotions in November, the sources indicated.

Alibaba will be teaming up with Maizu whereas Qihoo 360 is partnering with Coolpad, the sources disclosed. The two pairs have started placing chip orders for smartphones in the third quarter of 2015, the sources said.

Chip orders placed by Alibaba, Qihoo 360 and other China-based Internet service providers are rising faster than orders from China's first-tier handset vendors, the sources observed.