Notebook brand vendors believe that the notebook industry will need at least one more year before fully advancing to USB 3.0 since the cost and performance stability of existing USB 3.0 chips, as well as market acceptance and increased expenses from other key components are all factors that the vendors are currently evaluating, according to sources from notebook vendors.

Although several notebook vendors including Hewlett-Packard (HP), Acer and Asustek Computer, started adopting USB 3.0 into their machines in early 2010, the proportion of their USB 3.0-based models in total shipments is still rather small and only a few high-end models have adopted the technology in order to boot demand.

Because Taiwan-based makers are yet to pass certification by the USB Implementers Forum (USB-IF), the current USB 3.0 controller chip market is dominated by NEC, which merged with Renesas in 2009, and the company is charging about US$4-5 for its solutions. However, since notebook vendors are facing cost increases for most other components, while consumers currently have no urgent demand for the technology due to a lack of related applications, most of vendors are postponing their mass adoption to reduce costs.

Therefore, most of the competition surrounding USB 3.0 is mainly centered on motherboard makers such as Asustek and Gigabyte Technology, the sources pointed out.

As Taiwan-based USB 3.0 players including ASMedia Technology, Etron Technology and VIA Labs are all estimated to pass the USB-IF certification process by the end of the year, pricing of USB 3.0 host chips should see some changes soon, noted the sources; however, some USB 3.0 players are concerned that the USB 3.0 market is likely to enter a price war at the end of 2010 with second-tier players facing difficulty in earning profits.

In additional news, ASMedia has obtained Windows Hardware Quality Lab (WHQL) certification for the ASM1042, its USB 3.0 host chips, and expects the USB 3.0 business to start contributing revenues after it obtains a USB-IF certification logo.

By: DocMemory
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