This Is Making Cypress a Market Leader in USB-C

Cypress Semiconductor (CY) is aiming to gain more market share in the USB (universal serial bus) space with its new USB-C port, a common connector for all electronics devices. But the wired connectivity market is changing fast as the overall technology develops, and so Cypress is moving fast to capture the first-mover advantage.

Within a span of three years, Cypress launched six connectors, starting with CCG1 based on PSoC (programmable system on chip) followed by CCG2. It then launched CCG4—the industry’s first dual port—and CCG3 to drive more integration and programmability, followed by CCG3PA for power adapters, and CCG5 for notebooks and docks.

As the wired market becomes complex with an increasing number of widgets for different applications, there’s a larger need for a common connector that can work with all these widgets. Cypress’ new USB type-C connector delivers 100 watts of power and can work with any product, such as mobiles or PCs (personal computer).

The USB-C can work as a Display Port, Power Adapter, Thunderbolt, HDMI (high definition multimedia interface) cable, USB type A, and USB micro-B. The complete solution to all wired connectivity needs is driving adoption of USB-C across several widgets.

Cypress’s USB type-C is used by the top three PC OEMs (original equipment manufacturers), including HP Inc. (HPQ) and Apple (AAPL). It is now being incorporated by second-tier PC OEMs. The company is working with Japan’s (EWJ) Panasonic to develop industry’s first USB-C that can transmit high-definition video to HD and 4K TVs.

At the company’s 2017 Analyst Day, Cypress CEO (chief executive officer) Hassane El-Khoury stated that more and more, widgets provide a USB-driven charger, and this trend will likely shift to USB type-C, appearing in PCs, smartphones, cars, and industrial IoT (Internet of Things) devices.

This design activity is currently ongoing, and it may appear in cars in the next three to four years and in industrial devices in the next two years. This would grow USB-C’s total addressable market at a CAGR (compound annual growth rate) of 89% between 2016 and 2021, according to Cypress.

Cypress expects to ramp up its USB-C in 2H17 as its PC and mobile customers launch their flagship products.

Now let’s discuss how USB-C adoption could pick up in the in 2H17.