NEC Reduces Prices of USB 3.0 Chips

Back when the USB 3.0 SuperSpeed standard was finalized, NEC was the first to offer controller chips capable of enabling a motherboard to handle the new transfer rate of 5Gbps. Then, some time later, other companies started offering such chips, such as ASMedia, Fresco Logic, Via Technology. These players have since been aggressively marketing their solutions. In order to reinforce its hold in this area, NEC will, for one, supposedly start selling cheaper controllers in the fourth quarter of 2010, while preparing to unveil a new series of products later on.

According to a report published by Digitimes, market watchers predict that total USB 3.0 chip shipments will amount to 20 million by the end of the year. This number will supposedly grow to 40 million in 2011. ASMedia is already offering such controllers priced at US$1.7-1.8 for batch orders. On the other hand, the company, as well as the other Taiwan-based providers of USB 3.0 controllers, haven't yet passed USB-IF certification.

The fact that certification has not yet been granted means that shipments won't begin until October or November, leaving the launch of related products in channel to December or January 2011. In the meantime, NEC will reduce the prices of its existing parts. The report says also that the hardware maker will unleash a sub-US$2 batch during the first quarter of next year. The main goal in all this is, obviously, to preserve its preeminence, since it currently holds a 90% share of the segment.

The imminent price reductions may damage NEC's profits but the income from IP licensing fees is expected to make up for the losses. As for the chips bound for early 2011, they will be meant to help NEC bypass a potential price competition entirely. Those controllers will be more energy efficient and will have a higher performance while maintaining mainstream price points.