In response to Intel's support for China-based component makers to become supply chain makers for ultrabooks, Taiwan-based makers indicated that it will be difficult for China-based makers to replace Taiwan-based makers in the ultrabook supply chain in five years

An 18-21mm thick ultrabook is packed with more than 1,000 components, each one required slim designs, the sources indicated. This is a large technological barrier making replacement of Taiwan-based makers difficult, the sources explained.

Taiwan-based makers account for over 95% of global notebook ODM production, and most component makers are Taiwan-based, according to Digitimes Research.

Supply of key components, including processors, panels, memory, and batteries, are mainly dominated by US-, Japan- and South Korea-based enterprises, the sources noted. Taiwan-based makers focus on structural components and have gained the upper hand over China-based makers in technological capability, production efficiency and yield rates, the sources pointed out.

Source:digitimes