BUZZ-ARM big faller as peers extend losses

** Chip designer ARM Holdings (LSE: ARM.L - news) top faller on Britain's FTSE 100 on Monday, extending previous session's weakness which came on the heels of U.S. chipmaker Microchip Technology (NasdaqGS: MCHP - news) 's sales warning.

** Microchip said quarter hurt by lower business activity in September, particularly in China.

** Demand concerns also took their toll on the stock as fears about faltering global economic growth ramped up, hitting equities across the world.

** A 2 pct drop in ARM takes shares down to near three-month lows. Stock risen more than 400 pct in past five years.

** CSR (LSE: CSR.L - news) , whose chips are used in products such as speaker docks and Apple (NasdaqGS: AAPL - news) -owned Beats headphones, and which fell sharply on Friday, dropped a further 1.8 pct. Microchip, which is in pursuit of the company, has until Oct. 15 to decide whether to make an offer for CSR or walk away.

** Imagination Technologies (Other OTC: IGNMF - news) , whose technology is in Apple's iPhone, shed 2.8 pct. (RM (LSE: RM.L - news) ://tricia.wright1.thomsonreuters.com@reuters.net)