The upcoming launch of Intel's Ivy Bridge processors is expected to ignite a wave of replacement in USB flash drives, which Taiwan-based suppliers of flash device controllers identify as an opportunity. However, the addition of native USB 3.0 support to the new Intel chipset will also challenge the controller design firms, as demand for independent USB 3.0 host controller ICs could shrink.

In light of the falling demand, more Taiwan-based players will shift their focus to products for peripherals including hubs, flash drives and external HDDs, industry observers believe.

Despite the fact that some of Taiwan-based controller design firms successfully entered the market for USB 3.0 host controllers, dominated by Renesas Electronics, growing the business has not been as smooth as they expected due to fierce price competition, the observers indicated.

Putting more focus on peripheral applications could be more favorable to Taiwan's controller IC specialists including major players such as Innostor and Phison Electronics, the observers suggested.

ASMedia Technology and VIA Labs reportedly have secured 2012 orders for USB 3.0 bridge controllers used in external HDDs from Toshiba and other Japan-based vendors, with shipments to kick off later in 2012. Both firms have primarily put their focus on products for USB 3.0-compatible peripherals.