It has been officially confirmed that GPU and chipset manufacturer NVIDIA is entering the netbook space with core logic of its own.

Boasting the GeForce 9400M chipset, NVIDIA wants to shrink the footprint of a netbook motherboard to the size of your palm. While Intel-based netbooks (surprisingly) struggle with both size and complexity, the 9400M is an elegant single-chip solution that provides video and all manner of connectivity.

NVIDIA VP of World Wide Sales Rene Haas contends that the Intel Atom is “actually a very good processor,” but it has been hamstrung by outdated Intel chipsets. When asked about the Intel platform, he said that Intel chipsets somewhat “[constrain] the experience.”

While readers might question the need for smaller netbooks, it’s important to note that NVIDIA’s newly-minted goods only shrink internal hardware. Increasing free space in a netbook’s chassise leaves manufacturers with considerably greater leeway in adding connectors, ports, and other amenities common to larger notebooks.

Preview silicon presented for analysis shows a very compelling and fully-featured product that boasts DVI, HDMI, DDR3, USB, and gigabit ethernet. Additional demonstrations from NVIDIA showed a product that’s ready to run rings around any fully-Intel netbook.

While no manufacturer has yet committed to building a netbook on NVIDIA’s new platform, every manufacturer is apparently quite interested in what Big Green has to offer.