Supply may catch up to demand in the second quarter of next year, Chief Financial Officer Jackie Ding said in an interview at Simplo’s Hsinchu, Taiwan headquarters Tuesday. A month ago, the company had expected the shortage to end by the first quarter of 2009, she said.

Compal Electronics Inc., the world’s second-largest maker of laptops, has blamed the shortfall of batteries for crimping notebook computer sales. Simplo, which assembles cells into battery packs for Hewlett-Packard Co. and Dell Inc., fell 15 percent in the two weeks to Aug. 21 in Taipei trading on concern oversupply will erode earnings, according to Deutsche Bank AG.

“Batteries are key for overall notebook shipments,” said Tina Chang, who rates Simplo “buy” at Merrill Lynch & Co. in Taipei. “In the first half of this year notebook constraints could be seen because of the battery shortage.”

Ding said on Aug. 26 that supply fell short of demand by 10 percent in the second quarter. Compal said on March 5 the battery shortage would hamper shipments during the first half of the year.

Fires at Seoul-based LG Chem Ltd. in March and a Matsushita Electric Industrial Co. factory in October prompted competitors such as Sanyo Electric Co. to boost production to meet demand.

Plans by Sanyo and Matsushita to boost investment in battery cell production won’t raise supply until 2009 or 2010, Ding said. Matsushita, which sells its products under the Panasonic brand, will spend 100 billion yen to triple laptop battery capacity, the Yomiuri newspaper reported on July 17.

“All those cell players, what they do is control the market,” Ding said. “If it’s in an oversupply status, then the oversupply will hurt them, while for us it will be an advantage.”

Sanyo spokeswoman Kumiko Makino, Matsushita spokesman Akira Kadota, Sony Corp. spokesman Chisato Kitsukawa and Samsung SDI Co. spokesman Seo Hae Soo said their companies are producing battery cells at about maximum capacity and are not withholding supply. LG Chem spokeswoman Tracey Park declined to comment on the supply and demand outlook for the industry. Ding Tuesday reiterated the company’s Aug. 26 forecast that sales this quarter will rise 38 percent from the second quarter to as much as NT$8.4 billion.