The notebook business of Pegatron Technology will not be affected by the entry of China-based players into the OEM notebook sector, according company chairman Tung Tsu-hsien.

The rise of China-based OEM makers as well as the supply chain in China is part of global supply and demand, and should not have a significant impact on Pegatron's operations, Tung said.

Tung made the remarks referring to local media reports indicating that China-based BYD Electronic has landed OEM orders for entry-level notebooks from Asustek Computer, which is also an OEM notebook client for Pegatron.

BYD has expanded its product lines to include automobile, fuel cells and metal processing, but its expansion has not constituted a threat to other makers in the related industries or has resulted in a squeeze-out effect on rival companies, Tung commented.

Meanwhile, Pegatron has been allocating more of its resources to develop mobile devices and may occasionally lose some OEM notebook orders to rivals due to limits in production capacity, Tung noted.

Pegatron and other makers in the supply chain should strive to enhance their competitiveness to cope with rising competition resulted from the entry of newcomers, Tung added.