Notebook ODMs have been expanding into the Internet of Things (IoT) industry with both Compal Electronics and Pegatron Technology having established teams to specifically handle related development, while Wistron has been investing in IoT players to build cooperation.

As orders for notebooks have been dropping, the IoT market has become a new front where notebook ODMs are looking to gain profits. Although IoT-related devices do not have a clear business model, unified standards, nor a set position in the market, ODMs are still aggressively pushing related development, believing that 2016 will become an important year for IoT development.

Following its cooperation with Taiwan's Chang Gung University to develop smart garments and healthcare devices for hospitals, Compal has re-organized its business structure and separated into two major business groups: PCs and smart devices. The company also established several new departments for the IoT, healthcare and car electronics businesses.

Compal president Ray Chen previously noted that the company's wearable and IoT device shipments will grow significantly to 5.6 million units in 2016.

Compal also invested in industrial PC (IPC) player Avalue to acquire a 20% stake in the company, hoping its experience in healthcare system development and clients can benefit related businesses. Compal has also invested in General Life Biotechnology to acquire an over 50% stake and cross into the biotechnology sensor industry

Wistron, in addition to its partnership with Arbor Technology, is eying new investment targets that focus on IoT technology.