ARM, the UK designer of chips that help power Apple's iPhone, said first-quarter sales rose 26% on booming demand for smartphones and tablet computers.

Smartphones and tablets will be the first devices to use ARM's upcoming Cortex-A15 processor, and will be available starting late 2012 or early 2013, said James Bruce, the US mobile segment manager at ARM.

Just as tablets with dual-core processors start to hit shelves, chip makers are now shipping samples of quad-core chips that could make the devices even faster. Nevertheless, quad-core chips could be overkill as use of all cores could drain battery quickly...

"Shares of MIPS are selling off today because ARM announced a subscription license agreement with Broadcom," said Gary Mobley, an analyst with The Benchmark Company, in a report. "Because of Broadcom's heavy use of MIPS cores, Broadcom is MIPS' largest customer. We estimate Broadcom's royalties paid to MIPS represent 35% of MIPS' royalty revenue, or 15% of total revenue."

The new naming system will be first applied to the dual-core processor codenamed Orion, which was announced in September 2010. Carrying the name Exynos 4210, Samsung's 1GHz dual-core application processor is scheduled for production in March.

Chief Financial Officer Stacy Smith reiterated that the chip giant will be a strong player in the fast-growing mobile device market despite early struggles. Intel, which provides microprocessors that run about 80% of the world's computers, has been slow to gain traction in the smartphone and tablet markets. Products based on ARM Holdings PLC (ARMH) architecture have dominated the industry, with the chips seen as much more power efficient than Intel processors.

The TI OMAP 5 offers quad-core computing at up to 2GHz with power consumption barely breaking into double-digit wattage figures. In terms of raw figures, that level of performance is very near that of current Intel and AMD desktop chips.

"There are certainly server applications today for which ... a lack of 64-bit is not a barrier..."

"In 2010 there was a big bounce in the semiconductor market marking a recovery year which has seen the industry overall grow about 15%," said Tim Score, ARM's CFO. "ARM grew about 30%, and this year we expect the industry to grow about 5% to 8%, and that we will grow faster."

Speculation ARM could become a takeover target is misguided and ignores the importance of the chip designer staying independent, ARM's president said.

Texas Instruments has admitted that Nvidia beat it to market with the first dual-core processor for tablets. This is surprising statement from a company that has been in the business of building power-efficient chips based on the ARM design for close to two decades.

The agreement extends access for ARM to assure early time-to-market readiness of the necessary platform of physical and processor IP solutions for nodes ranging from 20nm through 14nm.

The pending acquisition of Motorola's mobile telecom equipment arm by Nokia Siemens Networks (NSN), which is pending approval by China's Ministry of Commerce, would make it more difficult for domestic rivals Huawei Technologies and ZTE to enter the US market, an analyst said.

Warren East, chief executive of ARM, said the market for tablet PCs could grow to as much as 60m unit sales in 2011 as he brushed aside concerns that Intel would pose a major competitive threat to the UK chip company in the fast-growing market.

ARM shares, up 120% since the start of 2010, fell to their lowest in nearly two months after a statement overnight from Texas Instruments that end-demand for chips could be weakening.

"With the Embedded Initiative, Altera is enabling designers in markets such as automotive, industrial, military and wireless to easily leverage a rich ecosystem of processor, OS and IP support all through a single design flow, and to reduce overall system cost..."

Intel's new chip - code named Moorestown - would result in smart phone visuals and remove the need for a separate graphics chip in computers.

Earlier this week Samsung unveiled the new processor for smartphones, tablets and netbooks, which is codenamed Orion. Analysts at Royal Bank of Scotland (RBS) said our "checks suggest that this processor also uses ARM GPU".

Arm Holdings has taken the wraps off its next major chip design, promising a five-fold increase in performance that the company hopes will take it beyond smartphones and into new types of equipment such as high-performance routers and servers.

ARM has reiterated that it wouldn't make sense for a rival to purchase the company after shares rose on takeover speculation.

Looks like Intel is getting serious about competing with mobile chip vendors, ranging from applications chip makers such as Marvell to intellectual property companies such as ARM.

2011 will likely see the release of a more powerful series of smart phones thanks to a new Snapdragon chip from Qualcomm. And of course there will be another set of Apple iPhones and iPads next year, which will have their own ARM processor, most probably running at faster speeds than the 1GHz at present.

Battery Ventures, Flybridge Capital Partners and Highland Capital Partners represent the traditional venture capitalists behind Smooth-Stone. They have been joined by ARM, Texas Instruments and Advanced Technology Investment Company (ATIC).