Despite that some industry players expect battery cell supply will reach an equilibrium in the fourth quarter, sources at Taiwan notebook battery module makers have noted that it is still too early to tell whether supply will be enough to feed demand. They generally believe shortages will only be solved when fresh capacity becomes available from 2009.
Simplo Technology Company (SMP), however, indicated that battery cells will still be in shortage in the third quarter. Despite that supply may not be that tight in the fourth quarter, overall supply will still fail to meet demand, said company sources. LG Chem (LGC) resuming its capacity to normality and additional capacity from China-based vendors are the key factors easing the shortages, the sources explained. But they emphasized that a fundamental improvement will be only seen in mid 2009.
Dynapack International Technology shared a similar outlook, saying that shortages will persist in the fourth quarter. Despite fresh capacity coming onboard, overall supply will still trail demand, according to company sources. They noted that the weak US economy is unlikely to pose a critical impact over notebook demand in the second half of 2008. The sources at Simplo also indicated that order landing status for the fourth quarter is good.
Responding to concerns about possible average selling price (ASP) drops, the sources at Dynapack said any adjustment will be limited.
Article translated by Esther Lam
