The Inquirer is reporting that NVIDIA is working on Tegra APX 2500 and CSX 600/650, ARM11 based chips. Both the chips are aimed at the smartphone and handheld device market. The APX 2500 chip will come in 144mm2 package and will do 720p encoding and decoding at up to 14Mbps. The chip will have support for OpenGL ES 2.0 and DirectX. The CSX 600/650 processors are aiming for the same market that Intel’s Atom processor is addressing, the UMPC and mini-notebook market. The chip comes with 256K of L2 cache and runs at 700-800MHz. It will support 1080p video and will use 3W power. The only thing stopping this chip from competing directly with Atom processor is that it’s an ARM11 chip and will run Win CE but not Windows XP or Vista. NVIDIA will start sampling the chips by end of summer.