If HP sells the PC business to Samsung

DigiTimes:

The extent of changes remains uncertain at this point, but many Taiwan comapnies could be seriously hit if HP sells the PC business to Samsung Electronics, the sources said. Rumors have been circulated since first-quarter 2011 that HP has contacted Samsung about selling the PC business to the Korea-based firm, the sources from Taiwan’s supply chain added.

Chimei Innolux (CMI) and AU Optronics (AUO) could be hit hard if Samsung ended up with HP’s PC business.

In South Korea, Samsung is the biggest name in PCs selling desktops, all-in-ones, and notebooks. Acquiring the PC business from HP would gain Samsung instant access to the U.S. market.

The other plus stems from the situation in the display market. There is an oversupply. Purchasing HP’s PC business will give the LCD portion of Samsung a huge internal customer, ending the problem of having more supply than demand for its LCDs. That would mean Samsung will tap internal LCD supply before heading to either CMI or AUO.