Taiwan-based IC distributors have expressed concerns about profits from USB 3.0 product lines despite prospects of their strong sales in the market, as quotes of USB 3.0 device controller chips have dropped below US$3 from the previous US$5-6, according to sources with IC distributors.
The price war started with ASMedia Technology, a subsidiary of Asustek Computer, selling its USB 3.0 controller chips at US$5-6, the sources said, adding VIA Technologies' IC design subsidiary then lowered its price to US$3.0. ASMedia is expected to further cut prices to US$2-2.5, the sources indicated.
According to IDC, demand for USB 3.0 chips will total 12.45 million units in 2010 and 100 million units in 2011. In 2015 the volume will grow sharply to 2.3 billion units, 50% of which will be adopted for storage applications to generate revenues of NT$200 billion (US$6.18 billion). Taiwan-based makers are expected to have 40% of the storage segment in the USB 3.0 market in 2015.