Connector and cable assembly makers are matching the trend for faster transmission in storage devices.

China suppliers are boosting production of USB 3.0 connectors and cable assemblies to take advantage of the trend for faster transmission in storage devices. Also known as SuperSpeed USB, the standard boasts 10 times higher data rate than USB 2.0. This allows seamless management of HD video, music and image files. USB 3.0 devices also consume less power, thanks to their energy-saving feature.

More products are being designed to accommodate USB 3.0 capability. In five years, 40 percent of portable media players will be equipped with the specification, while over 1.7 billion devices adopting the configuration will be shipped in 2014. USB 3.0 flash drives will account for 225 million units, representing a CAGR of 792 percent in 2009-14.

In 2010, about 10 million USB 3.0 chips were rolled out, according to In-Stat. Intel and AMD will begin production of chipsets supporting the interface in 2012.

With demand expected to climb, Shenzhen Sijinxin Electronic Technology Co. Ltd aims to raise the output share of USB 3.0 connectors and cable assemblies to 50 percent this year. It churns out 50,000 units monthly at present. Shenzhen FJY Electronic Co. Ltd, meanwhile, started offering USB 3.0 connectors in 2009, and is now supplying compliant cable assemblies as well.

Material overhead declined in the past months, thus pushing down USB 3.0 cable quotes. Host controller spending slipped to as low as $2 from $7 to $9 in 2008. This reduced cable rates by $0.50 to $1 compared with six months ago. The variant is still three or four times more expensive than USB 2.0 types, but prices are forecast to drop further.

Host controller providers such as Fresco Logic and Taiwan’s ASMedia and Etron are striving to keep the component’s cost under $2, the same level that accelerated USB 2.0’s penetration of the mainstream.

Mainland China enterprises are offering standard, Mini or Micro, A or B, female and male USB 3.0 cables. Most companies source the connectors from foreign-owned suppliers or overseas partners on request. More makers, however, are starting to produce inputs in-house.

Manufacturers are likewise broadening selections to boost the segment. They are incorporating USB 3.0 capability in card readers, flash drives, hubs, hard drives and PCI
Express cards.

Note: This article "USB 3.0 interconnect manufacture gaining steam" was originally published by Global Sources, a leading business-to- business media company and a primary facilitator of trade with China manufacturers and India suppliers, providing essential sourcing information to volume buyers through our e-magazines, trade shows and industry research.

All price quotes in this report are in US dollars unless otherwise specified. FOB prices were provided by the companies interviewed only as reference prices at the time of interview and may have changed.

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