As expected, NVIDIA just announced Tegra 2, the next generation of its ARM-based Tegra platform. The new processor is a 40nm chip that's supposedly much lower power than Atom and even Snapdragon, and can still do full HD streaming and HDMI out. Supported OS's include Windows CE, Windows Mobile and Android, with Chrome OS on the drawing board -- "hundreds" of test systems are out there, and devs can order their own test units this month. It'll take a while before we see shipping production hardware, but NVIDIA says plenty of partners will be announcing Tegra 2 tablets with five to ten-inch touchscreens at CES. Why tablets and not smartbooks? Because consumers get confused when they see a keyboard and assume they're getting a full computer. Smart thinking, if you ask us. Oh, and this is interesting: there are some big wins with embedded systems in cars, so your next ride could be Tegra-powered. As for Tegra 1, it's still around and set to be a big part of some upcoming phones; we'll wait to see what happens on that front. PR after the break.