E-Readers' new chip could drop cost to $150

A new microchip that combines an applications processor and display controller could soon drop the price of e-readers by $30, according to reports.

Freescale Semiconductor, which supplies chips to both Amazon.com's Kindle and the Sony eReader, says it supplies 90% of the market, and some analysts say the innovation could mean some e-readers may wind up retailing for less than $150. Aside from lowering cost, Freescale's new i.MX508 processor will double speed, support larger screens and improve battery life. Sales this year are expected to reach around 8 million units, the Austin, Tex., company reported.