This is the yet to be answered question. Personally, I think there are two 16 GB chips because Apple can reap some major volume discounts by using 16GB chips in the iPhone and the 16 & 32 Touch models. Others say there is one 32GB chip. I have searched high and low for conclusive proof one way or the other and have found nothing. Come on iSuppli! Get with the program! Anyway, has anyone managed to figure this question out?