Asustek Computer has added platforms developed by Qualcomm and Taiwan-based MediaTek for its ZenFone-series smartphones, reducing the proportion of platforms developed by Intel, its original supplier. Asustek's Intel chip demand is estimated to decrease from about six million units in 2015 to below five million units in 2016 and may be down further by 50% in 2017, according to industry sources.

With major clients such as Asustek and Lenovo cutting orders, Intel is under strong pressure to stay competitive in the market.

Intel's mobile communication business lost over US$10 billion in the past three years and despite a merger with its PC Client Group, adjustments in business structure and marketing subsidies, the business is still suffering from losses.

Although Intel has been cooperating with first-tier smartphone vendors to develop products using its platform, Asustek and Lenovo are the only two players with large orders and Asustek is the largest client of Intel.

Asustek shipped about 20 million smartphones in 2015 and Intel-based models accounted for around 30% of the volume. The percentage is expected to drop further to below 20% in 2016 as Asustek's smartphone shipments are expected to reach 25 million units.

Within Asustek's upcoming ZenFone 3 series, which will be released in June, only 15% of the shipments will use Intel's platform.

The sources believe Asustek's order cut is because of Intel's delay on its 4G SoFIA LTE chip launch. With 4G smartphone becoming the trend of the market, Asustek cannot afford the risks brought by Intel's delay and therefore has gradually increased its orders from Qualcomm and MediaTek.