With more companies gearing up for the booming market for USB 3.0 flash drive controller ICs, competition is expected to be fierce in 2013, according to sources at memory module firms.

At least eight NAND flash controller designers will put a lot of focus on their USB 3.0 flash driver chips, acknowledging that the penetration rate for flash drives with USB 3.0 will top 30% in 2013, the sources indicated. The rate could rise to as high as 40-50% at the end of 2013, the sources said.

Companies, which have ventured into the USB 3.0 flash drive controller market space, include Alcor Micro, Phison Electronics and Silicon Motion Technology, as well as new entries, including ASMedia Technology, Etron Technology, Innostor Technology and VIA Labs.

Annual demand for USB flash drives is estimated at 200-300 units, according to sources at controller IC suppliers, adding that the adoption of USB 3.0 is expected to grow substantially in 2013.

In addition, Phison currently has its flash drive controllers produced using 55nm process technology, while VIA Labs' chips are built on a 85nm process. Other controller designers use 0.11-micron and above processes for their products.