The next generation of iPods could well have British innovation at their hearts, according to reports.

A Cambridge-based subsidiary of mobile semiconductor specialist, Broadcom is developing chips for the next generation of Apple iPodsthat will have video technology.

The company was called Alphamosaic until Broadcom bought the company for $123 million last September.

Alphamosaic’s Videocore technology was recently used to to display video on two inch colour LCD screens that capture four mega-pixel images.

Speaking of the iPod deal Tom Foremski, at website SiliconValleyWatchersaid : “It is a great win for UK chip design.”