Sources tell us that Google is currently building a custom processor and GPU for use in Android devices. The source says that a programming employee at Google told him this information. Google wants to create a product they can support for an extended period of time, much like Apple and the iPhone. The processor will be probably be found in the next Nexus device, which means we should hear something about it later this year.
We asked Google for a comment, but have not heard back. We will update with more info soon.