August Chip Sales Perk Up

The NAND business has been battered for most of the year by plummeting prices and a glut of supply. A power outage at Samsung, the world's No.1 maker of NAND flash chips, shut down its production line for a day in early August, easing the oversupply of the chips somewhat.

Meanwhile, a new crop of iPods from Apple(AAPL Quote), as well as the introduction of its much hyped iPhone, are shoring up demand for flash memory chips.

The Philadelphia Stock Exchange Semiconductor Sector Index, which comprises 19 semiconductor stocks, was recently up 1.6%.