Kingston Technology reportedly plans to expand its purchases of USB3.0 flash drive components, which is expected to boost the penetration rate for drives with USB 3.0, according to sources at memory makers.

　　The penetration rate for USB flash drives with USB 3.0 has improved to 15% from about 10% in the first half of 2013 - quite a disappointment, said the sources. The transition to faster USB 3.0 interface has had little contribution to growth in demand for USB drives, mainly due to the emergence of cloud storage, the sources noted.

　　Sluggish growth in the USB flash drive market has prompted companies like ASMedia Technology, ITE Tech and VIA Labs to phase out their flash drive controller businesses, the sources observed. Phison Electronics, Silicon Motion Technology and Innostor Technology are currently the major suppliers of stand-alone NAND flash device controllers, the sources said.

　　ASMedia plans to stop offering controller solutions for USB 3.0 flash drives, while ITE Tech has spun off its NAND flash controller business into a separate entity. Meanwhile, VIA Labs is mulling exiting the market, the sources indicated.

　　In other news, NAND flash contract prices continue to fall in November, according to the sources. Prices have dropped since October, as end-market demand falls at a faster pace than the pace of contraction in the supply.