Nvidia chief Jen-Hsun Huang has indicated that the next version of its Tegra chip will be Android orientated. Speaking during a conference call with Nvidia executives and market analysts, Huang said: "Although it made sense for the first-generation Androids to use available phone processors, the follow-on generations of Android are really going to go after performance. So we’re going to come to market with second-generation Tegra with the third generation Android”.

The move signals a move away from Microsoft where the original Tegra chip debuted, in the Zune HD and, more recently, the Kin mobile phone. However, Microsoft has indicated that initial chip exclusivity for Windows 7 Mobile phones would be given to Qualcomm and not Nvidia. Ouch.

Huang sees the Tegra 2 as a serious competitor for the iPhone's Apple A4 processor. He said: "The bar is pretty high for all the mobile players and they need a processor that can keep up with the A4. If not be much better than what the A4 can do because they have to take on the leader in the space".

So it's all out war in the mobile chip market. Well, not exactly war as such, more like lots of business men in expensive suits stating how their chip is the best. But it'll be interesting to see how it pans out none the less.