Taiwan-based notebook makers are demanding their chip providers lower quotes for 2016 so that cost structures can be improved amid less-favorable market conditions.

Sources at IC design houses have disclosed that Taiwan's notebook makers are seeking lower quotes for chips and components as they face continued sluggishness in the market. However, their upstream suppliers are still reluctant to lower prices, the sources said.

Weakness in the notebook market has already prompted many chip providers to put increased focus on other market segments, according to sources at analog IC suppliers.

In other news, strong shipments of communication products are helping offset Pegatron Technology's lackluster performance in the notebook ODM sector. Pegatron reported impressive profit results for the third quarter of 2015 with gross margin reaching 6.7%.

Gross margins at Taiwan's major notebook ODMs including Quanta Computer, Compal Electronics, Wistron and Inventec were in the range of 4-5% in the third quarter of 2015.