Based on the analysis from EnergyTrend, a research division under TrendForce, although the possibility of the merger between HP and Samsung is uncertain in the short run, if it materializes, the impact could be substantial. HP made a public announcement on March 11, stressing that the merger is rather a market rumor than a fact.
In terms of current supply chain, HP has its suppliers of cell and pack from Japan and Korea to diversify the risks of battery cell supply and battery pack supply. In addition, due to HP’s economies of scale, suppliers compete with each others instead of being exclusively monopoly.
Chart 1 Analysis of Current HP Supply Chain
HP as the greatest NB brand vendor in the world, whose major battery cell suppliers are SDI. LGC, and Sanyo, and whose main battery pack manufacturers are Simplo, Sanyo, and SDI. However, since HP denies the the rumor about the merger, possible benefits from the merger for SDI might not materialize.
Chart 2 Possible Benefits if Merger Materializes