China-based component makers have recently started competing for orders from PC ODMs with their advantages in product quote, which is about 10-20% lower than the market's average, and the moves could greatly impact Taiwan component makers' performances, according to sources from the upstream supply chain.
Since many PC players have already turned to adopt components from China makers, Taiwan makers are currently focusing on strengthening their technologies and automation production in hoping to keep their orders.
There are already several China-based component makers that have established offices in Taiwan for the convenience of contacting ODMs and competing for orders.
With China-based brand vendors' nurturing, most mid-range and entry-level component orders were taken by China-based component makers, leaving only few high-end orders for Taiwan makers.
Since pricing has already become the main shipment growth driver of the PC industry, most vendors are now focusing on acquiring cheap components in order to stay competitive, which relatively helped China-based component makers to rise.
