NVIDIA have been talking about their Tegra mobile graphics processor for over a year now, but finally it seems that the processor is going to start appearing in some commercial handsets.
HTC are appaprently planning on using the processor in *some* of their 2009 handsets. Now given HTC's enthusiasm for Android and their plans to release more Android powered handsets this year there's a good chance we could see a Tegra integrated Android phone sometime this year.
Here's some specs for the processor:
- ARM11 MPCore running at 800MHz
- HD AVP (High Definition Audio Video Processor) 720p H.264, MPEG-4, and VC-1/WMV9 Decode
- 720p H.264 and MPEG-4 Encode
- Supports multi-standard audio formats including AAC, AMR, WMA, and MP3
- JPEG encode and decode acceleration
- ULP (Ultra Low Power) GeForce GPU
- OpenGL ES 2.0
- D3D Mobile
- Programmable pixel shader
- Programmable vertex and lighting
- CSAA support
- Advanced 2D graphics
- Up to 12Mpixel camera sensor support
- Advanced imaging features
- True dual display support
- 720p (1280x720) HDMI 1.2 support
- SXGA (1280x1024) LCD and CRT support
- Composite and S-Video TV output
If all that technical stuff doesn't mean all that much to you then take a look at these screenshots and video footage of what this new processor will offer.
NVIDIA apparently developed their own smartphone prototype specifically to demo Tegra.

More info available
here,
here, and
here.
Cross your fingers for some more demo footage at next months Mobile World Congress.