With Taiwan-based panel makers experiencing tight production capacity for 18:9 all-screen panels, China-based smartphone vendors such as Vivo have shifted some orders to local panel suppliers in China, according to industry sources.

Major smartphone players in China, including Huawei, Oppo, Vivo, Xiaomi Technology and Gionee have recently accelerated their developments of all-screen models - a move which is positive for the upstream supply chain, allowing supply chain makers such as panel suppliers, to raise their quotes for the second half of 2017, said the sources.

However, the upsurge in orders has also exacerbated the already tight production at some panel makers, forcing China's smartphone vendors to switch their orders, said the sources, adding that Vivo is seeking to secure all-screen panel supplies from Tianma Micro-electronics and others.

Xiaomi reportedly has adopted an aggressive policy to develop all-screen models, with a significant portion of new phones launched in the second half of the year to come with 18:9 panels, the sources indicated.

Xiaomi managed to recapture the fifth position in the smartphone vendor ranking in China recently, fueled by its recently released Redmi 4X and Remi Note 4X.