According to an EETimes article, NVIDIA
For now, though, PortalPlayer certainly hopes to retain its audio spot. Earlier this year, it lost its position in the iPod nano to a Samsung chip, resulting in a swift and painful karate chop to its stock price. Samsung may have had an advantage, due to its ability to supply Apple with the NAND flash memory used to store music in the Nano. If Samsung could make enough money from the flash memory it sold Apple, it may have been willing to give the Mac maker a great deal on its audio chip.
Don't feel too sorry for PortalPlayer. Its spot in the iPod nano was won despite another company having a strong presence in the market and a relationship with Apple. Apple used a Sigmatel
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Fool contributor Dan Bloom owns shares of Sigmatel -- as well as a video iPod. He's happy that it has taken so long for Apple to make it obsolete. He can be reached at email@example.com. The Fool's disclosure policy is irresistibly shiny.