According to reports, nVidia has secured a contract to create the multimedia chip to power future versions of the video iPod, supplanting Broadcom, Apple's current supplier.

EE Times claims that the chip designs have been put to tender, and adds that the new video iPod isn't now scheduled to come to market until 2007.

The report cites American Technology Research analyst Satya Chillara, who claims nVidia's corporate victory.

"We believe the nVidia chip adds 3D graphics functionality in addition to all of the existing features (such as H.264) that Broadcom supported with the existing vPod," he said.