Coming Q3 of 2011, ST-Micro will begin selling a Single-Chip GPS IC called the Teseo II. It has an ARM core integrated into it, which should help reduce the time it takes to get a fix, and simplify integration into any hardware project.
Pricing is set at $6 in volumes of 500k, so for hobby work it may be a cost/time trade-off.
ST selling single-chip GPS IC. – 1/27/2011 – Electronics Weekly.
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