More precisely, the chip in question should be a dual-core SGX543 GPU from Imagination Technologies.
The rumor goes hand in hand with another rumor that claims the iPad 2 will have a much higher resolution screen than its predecessor, although the jury is still out on the exact number of pixels it'll have.
The SGX543 graphics chip will most probably be paired up with a dual-core ARM Cortex-A9 CPU, which should make the iPad 2 a very powerful machine, more than capable of playing HD video.
iPad 2 Rumors Keep Going
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