Pre-Trial Summary Judgment...
Speculative damages won't hold up even in a California Court. Whether the chip could be built or not may hinge on impossibility. Unless the contract expressly stated off-the-shelf components, that is not part of the contract. As for TIME to complete a contract, that must be an expressed term of the contract or it is meaningless. As long as the defendant made an attempt in good faith, and failed, there is no damage award, especially over a new design that has never been attempted. The design itself is speculative.
The plaintiffs have no case.