After looking at the Chumby hardware schematics, it seems that a substantial hardware cost-saving could be achieved by creating "Chumby-on-a-Chip".  This would be a Chumby Inc designed silicon-chip, encompassing all the hardware elements present on the current circuit board, and also incorporating future peripherals to make the CoC more suitable for "Chumby-enabling" other devices in the future.

In keeping with Chumby's open-source philosophy, a good architecture for the CoC would be to use the OpenRISC 1000 CPU core and associated peripherals available at www.opencores.com.  This CPU is able to run Linux and full GCC tool-chain support is also maintained by the community.  CPU performance could equal the ARM processor used in the current Chumby, and additional hardware-accelerated features could also be included to boost the performance of widgets and the LCD display.  In addition to saving hardware costs, the CoC would also reduce the Chumby power-consumption by using the latest power saving techniques available in small geometry silicon processes.

To increase the volume of CoCs manufactured, Chumby Inc. could also allow third-parties to purchase the CoC, and create "Chumby Inside" products that enable access to Chumby content and services in a low-cost and easy-to-use way.  Chumby Inc could create a revenue stream by licensing the Chumby software to run on the CoC, and assisting third-parties to create value-added widgets for their particular application.