SMSC Introduces Industry’s Smallest, Full-Featured 7-Port Hi-Speed USB 2.0 Hub Controller

SMSC (NASDAQ: SMSC), a leading semiconductor company providing innovative connectivity solutions spanning analog, digital and mixed-signal technologies, today announced the USB2517, a new single-chip, 7-port USB hub controller. This new Hi-Speed USB device delivers the industry’s smallest footprint for a 7-port Hi-Speed USB hub controller, consuming 50 percent less board space compared to previous SMSC devices. Also featuring superior design flexibility and performance enhancing features, the USB2517 is an excellent solution for USB port expansion in docking stations, port replicators, remote displays and peripheral hubs designed for use with netbook and ultra-mobile PCs.

"USB has become a preferred connection solution for devices where content transfer speed and abundant connectivity ports are critical requirements,” said Mark Bode Vice President of Connectivity Marketing at SMSC. "The lack of a sufficient number of USB ports on the emerging spectrum of netbook and ultra-mobile PCs is creating high demand for external port expansion peripherals that can bridge the gap between these devices and the growing number of USB gadgets that need to connect to them.”

"For the new class of computing applications that require fast connectivity in ultra small form factors, SMSC’s USB2517 is an ideal solution,” said, Ted Kao, General Manager at GWC Technology, Inc. "Integrating the functionality of multiple ICs into a single-chip solution reduces design complexity and cost and affords greater flexibility for this burgeoning segment of the mobile computing market.”

Enhancing Peripheral Connectivity for New Class of Mobile PCs

Opting for ultra mobility, the emerging netbook PCs and Mobile Internet Devices (MIDs) offer fewer built-in I/O ports in order to achieve a desirable portable form factor. Typical netbook PCs feature two or less USB ports, no PC card slot, and in some instances, no Ethernet port (RJ45). Their compact design also limits display size, and exiles storage options such as optical disk drives, DVD-ROM or Blu-ray to peripheral components.

While these design changes promote portability, consumers continue to expect a full PC experience out of the smaller, less capable box when they transition from on-the-go to a more stationary environment like a home or office. To get equivalent desktop PC connectivity out of a netbook, a typical user would need multiple USB ports for a full-size keyboard, a mouse, a multi-function printer, and an external HDD for increased storage or a DVD-ROM drive for loading software. Power users may need a few more free ports to synchronize portable media players, charge their mobile phones, hook up surround sound speakers, or even drive an external LCD monitor for expanded display area.

"SMSC’s USB2517 is a compelling new solution for a myriad of USB port replicators and docking stations that provide add-on USB connectivity to this new class of mobile PCs,” said Mark Bode.

New Connectivity Options for Docking

When used in a basic USB hub box, the USB2517 provides up to seven additional USB 2.0 ports from one USB connection to a netbook PC. The USB2517 is extremely versatile when used in a USB docking station where its seven USB ports are utilized as internal and external attach points. A USB hub is typically located in the center of a USB docking station to act a central port of connectivity. SMSC’s USB2517 is designed specifically with this function in mind. Armed with unique features such as PortMap, PortSwap, TrueSpeed and PHYBoost, the USB2517 handles embedded USB connections with ease and provides designers the flexibility to meet the industry’s stringent USB certification requirements that often create configuration challenges to even experienced system designers.

The USB2517 also features SMSC’s MultiTRAK™ technology, which provides a dedicated pipeline, or a Transaction Translator (TT), for every downstream Full-Speed device. This allows end-users to experience a noticeable boost in Full-Speed data throughput compared to other hub controllers that use a shared TT system. Despite the rapid transition of the USB ecosystem from Full-Speed (12 Mbps) to High-Speed (480 Mbps), nearly 35%* of all USB peripherals currently shipping are still Full-Speed devices which require a TT to channel data to and from a USB High-Speed host. The performance boost provided by MultiTRAK is critically important for a USB docking station as the large number of concurrent USB data streams aggregated by USB2517 requires a high-performance hub to achieve optimal transfer rate for all attached USB peripherals.

USB Hub Family

SMSC’s USB2517 is the newest member of SMSC’s expanding USB Hub Family. With 2, 3, 4, and 7-port versions, SMSC offers a wide range of USB port expansion products to meet or exceed customers’ expectations. In addition to varying port counts, the USB Hub Family is available in commercial, industrial and automotive grades that are designed and tested for operating at perspective temperature ranges to meet customers’ requirements in computing, consumer and automotive applications.

Pricing & Availability:

Samples of the USB2517 are available today and range in price from $3.31 (commercial grade) to $4.46 (industrial grade) per unit. Pricing is based on 1K quantities.

* Source: In-Stat Report, 3/08

About SMSC:

Many of the world’s most successful global technology companies rely upon SMSC as a go-to resource for semiconductor system solutions that span analog, digital and mixed-signal technologies. Leveraging substantial intellectual property, integration expertise and a comprehensive global infrastructure, SMSC solves design challenges and delivers performance, space, cost and time-to-market advantages to its customers. SMSC’s application focus targets key vertical markets including consumer electronics, automotive infotainment, PC and industrial applications. The Company has developed leadership positions in its select markets by providing application specific solutions such as mixed-signal embedded controllers, non-PCI Ethernet, ARCNET, MOST^® and Hi-Speed USB.

SMSC is headquartered in Hauppauge, New York with operations in North America, Asia and Europe. Engineering design centers are located in Arizona, New York, Texas and Karlsruhe, Germany. Additional information is available at www.smsc.com.

Forward Looking Statements:

Except for historical information contained herein, the matters discussed in this announcement are forward-looking statements about expected future events and financial and operating results that involve risks and uncertainties. These uncertainties may cause our actual future results to be materially different from those discussed in forward-looking statements. Our risks and uncertainties include the timely development and market acceptance of new products; the impact of competitive products and pricing; our ability to procure capacity from our suppliers and the timely performance of their obligations, commodity prices, potential investment losses as a result of liquidity conditions, the effects of changing economic and political conditions in the market domestically and internationally and on our customers; our relationships with and dependence on customers and growth rates in the personal computer, consumer electronics and embedded and automotive markets and within our sales channel; changes in customer order patterns, including order cancellations or reduced bookings; the effects of tariff, import and currency regulation; potential or actual litigation; and excess or obsolete inventory and variations in inventory valuation, among others. In addition, SMSC competes in the semiconductor industry, which has historically been characterized by intense competition, rapid technological change, cyclical market patterns, price erosion and periods of mismatched supply and demand.

Our forward looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations and may not reflect the potential impact of any future acquisitions, mergers or divestitures. All forward-looking statements speak only as of the date hereof and are based upon the information available to SMSC at this time. Such statements are subject to change, and the Company does not undertake to update such statements, except to the extent required under applicable law and regulation. These and other risks and uncertainties, including potential liability resulting from pending or future litigation, are detailed from time to time in the Company's reports filed with the SEC. Investors are advised to read the Company's Annual Report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission, particularly those sections entitled "Other Factors That May Affect Future Operating Results” or "Risk Factors” for a more complete discussion of these and other risks and uncertainties.

SMSC and MOST are registered trademarks and MultiTRAK is a trademark of Standard Microsystems Corporation. Product names and company names are trademarks of their respective holders.