New intel indicates the next-generation Nexus 7 to come from Google and Asus will actually feature a Qualcomm Snapdragon chip of some kind, instead of a NVIDIA Tegra chip. According to the report from "sources in the supply chain," the problem is because the new device is planned to feature LTE/Voice capabilities for all models, and NVIDIA wasn't able to offer their next-gen Tegra 4i with built-in LTE in time for the device's launch at Google I/O in May. Because of this situation, Google/Asus had to find an easy replacement and Qualcomm's chips play nice with LTE. Here's a quote with the details,

Google's and Asustek Computer's co-branded second-generation Nexus 7 tablet reportedly has adopted a solution from Qualcomm instead of Nvidia, which was the processor supplier of the first-generation Nexus 7, according to sources from the upstream supply chain.

The second-generation Nexus 7 is expected to launch in May and without the orders, Nvidia may lose almost eight million processor shipments in 2013, the sources noted.

Nvidia shipped over 10 million Tegra 3s for tablets in 2012 with six million units supplied to Google for the first-generation Nexus 7. The rest of the volume was shipped to players such as Lenovo, Acer and China's white-box players, the sources said.

The sources believe pricing is not the reason Asustek turned to place orders to Qualcomm as Nvidia's and Qualcomm's chips have a similar price level and is likely because of the chips' communication chip integration process. Although Nvidia has released the Tegra 4i with an integrated 4G LTE chip, the processor was not able to catch up with the second-generation Nexus 7's launch schedule.
That's got to sting for NVIDIA, but they were just a little late to the party. So far, no other specs for the newest Nexus 7 are known, but we will share details as soon as we see them.

Source: DigiTimes