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Shares of Qualcomm, the mobile phone chip maker, fell 14.24 percent after the company tempered its sales forecast.
Chipmaker Nvidia has unveiled its Tegra X1, a mobile phone chip more powerful than those in most computers.
With that in mind, some computer makers are looking at adapting the designs of ARM, another phone chip company, for servers.
Texas Instruments, the world's biggest mobile phone chip maker, had its 2007 profit estimate cut by a Citigroup analyst who cited concerns over slowing handset demand.
One achievement has been to help track down suspected terrorists by intercepting phone calls made on Swiss prepaid mobile phone chip cards.
Motorola plans to announce today that it will begin selling its most advanced cellular phone chip sets, software and production tools to anyone who wants to buy them, including major rivals of its own handset unit.
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Qualcomm and Atheros have collaborated before, striking a partnership in 2006 to develop mobile phone chips.
Qualcomm, a major maker of mobile phone chips, is also part of the Mozilla project.
Qualcomm is the second-largest maker of mobile phone chips, after Texas Instruments.
Intel has been making advances in chips for smartphones, and the Intel phone chips are expected to appear in more devices using Google's Android operating system.
Qualcomm, the wireless technology and chip supplier, posted a higher quarterly profit on Wednesday on demand for its mobile phone chips.
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