"Full details regarding Tegra 2 are unknown, but it's expected to have roughly twice the power and graphical capabilities of the original and be based on 40nm processes. The current-gen Tegra is already capable of 1080p HD video; Hara says NVIDIA's goal is the desktop internet and media experience in a portable device:"
The first Tegra chip is mouth watering enough, but imagine a chip that can handle twice what the current Tegra does. That is just what Nvidia's Tegra 2 is rumored to do. They are set to release more details at CES 2010, including some demo products from their partners. The first half of next year will bring us tablet PCs, smartbooks, netbooks, and MIDs all powered by Tegra 2. Later down the line will we see a second generation Zune HD based off of the new chip? Or a Windows phone? Only time will tell on that one.