From OGR: News sbout the Stellar 3D chip:
The second 3D chipset, or 3D graphics core, which people probably haven't heard of before comes from a fairly new company called Stellar Semiconductor. They plan on releasing about 4 different chips based around a central design called PixelSquirt. The basic idea of pixel squirt is that unlike most current 3D accelerators out there right now, Stellar's products will be scanline renderers instead of polygon renderers or even the tile rendering systems of PowerVR. To understand how PixelSquirt works, it's probably easiest to consider it from the point-of-view of a tile based rendering system - except all the tiles happen to be 1x1 pixels.

Just like the PowerVR SG, the PixelSquirt engine makes use of deferred texturing and does all the hidden surface removal before the final pixel is actually rendered. Also, like the SG, the 'Squirt will allow for oversample based scene anti-aliasing, full support for all alpha blending modes, bilinear filtering and all the other usual effects one might expect. While PixelSquirt doesn't actually require a Z-buffer (to save on memory to keep costs down) it will still allow you to use a Z-buffer if you insist on it, to make use of any special effects that might specifically require Z-buffer lookups. PixelSquirt is designed from the beginning to be fully 32 bit, so image quality and image fidelity won't suffer even after a ton of alpha blends have been used.

PixelSquirt will be available initially in two forms. The first is a low cost solution (only around $10 per chip) and is called the Aquila PX. It should be a reasonable chip, though nothing great performance wise. The second chip they'll be offering based on 'Squirt is the TEX, which should be a real workhorse, able to pump out a peak of 250Mps, with support for more features including multitexturing, the oversample antialiasing I mentioned before, and anistropic texturing.

Yet, probably one of the coolest and most shocking things I heard about the PixelSquirt core is the thing only consists of about 400,000 transistors, which is almost nothing compared to the upcoming NVidia RivaTNT which boasts over 7 Million. Pretty cool that they can keep the design that small and that tight. Read more here.