Lenovo (LNVGY.PK -2.5%) will move to more than double in-house production of its notebooks, Digitimes reports. It aims to produce 60% of its notebooks itself in 2014 (from 25% in 2013), reducing Compal's outsourcing production to 30% from 50% currently and Wistron's to 10% from 20%.
A large part of production will occur in Hefei, China, where Lenovo operates a joint venture with Compal.
A Digitimes source stated that pricing competition in the notebook supply chain could intensify and erode profits as Lenovo and Samsung move to produce more of their notebooks in-house. Lenovo will procure components directly from China-based suppliers rather than through Taiwanese Original Design Manufacturers.
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