"Of course every transition to a new process has its problems," stated one source who requested anonymity. "We just weren't expecting it to be this slow."

Samsung, Qualcomm, and Texas Instruments already use ARM designed chip cores. Intel used to have an ARM license too, but flogged it to Marvell.

Samsung and Hynix sources said strong demand for advanced DRAM or DDR3 chips, has resulted in a price upturn for both DRAM and NAND flash memory chips used in high-end handheld gadgets such as smart phones.

SST (Silicon Storage Technology) has revised its estimates to reflect an improvement in its expected results for the third quarter, ending Sept. 30, 2009.

Like many other chip makers, TI discovered that the cost of Moore's Law–industry shorthand for the race to shrink transistors on digital chips–is too costly for the payoff it brings. It began placing greater emphasis on manufacturing analog chips.

Micron Technology has reported a narrower loss after an industry glut eased and product prices rebounded. DRAM sales increased 28% from the previous three months, helped by an 8% gain in ASP and a 19% rise in shipments.