When it comes to the manufacture of notebook computers, Taiwan is king these days. Compal Electronics, Inventec, Quanta Computer and Wistron have seen their total share of global production rise from just over 54% last year to more than 70% this year. The companies produce notebooks for some of the biggest names in the industry including Dell, HP and Lenovo -- as evidenced by an earlier DailyTech article.

The combined strength of the top four Taiwanese manufacturers has come at the expense of the smaller Tier 2 competitors. Companies like Mitac, Uniwill and Twinhead are all but being pushed out of the market as they suffer from declining sales and high inventory.  DigiTimes reports:

The concentration of production is expected to continue through 2007 as the top-four makers are now controlling nearly all notebook orders from the world's top-ten notebook vendors, who are also moving to centralize their operations while keeping a steady relation with their existing suppliers on production concerns over economy of scale and diversification of risks, the sources indicated.

Intel's Mobile Alliance (MA), which consists of Asustek, Compal, FIC, Quanta and Wistron, is also threatening Tier 2 manufacturers. The MA looks to boost sales in emerging markets, lower production and after-service costs, make better use of production channels and push for Intel’s Interchangeability Initiative. If the MA is successful, it could be possible that we'll see some consolidation in the lower ranks while the Tier 1 manufacturers continue to solidify their dominant positions in the market.