Yamaha developed a tiny electronic compass chip for mobile devices.

The Yamaha YAS529 three-axis Geomagnetic Sensor IC Chip is the world's smallest of its kind. Measurements of the compass chip are only 2x2x1mm.

Yamaha wants to make the use of GPS maps on mobile phones and portable GPS gadgets easier with their new chip. The YAS529 would enable to always have the displayed map be oriented correctly. This would make the use of GPS navigation of course much more intuitive.
The YAS529 combines a buffer amp, an A/D converter, a clock generator, and a serial interface circuit (I2c bus compatible) on a single three-axis geomagnetic sensor IC chip.
Yamaha will start to ship samples of the YAS529 in October.
More details in this Yamaha press-release. Via Nikkei.Net (Subscription).