In the iFixit Google Nexus One teardown, they found a Broadcom BCM4329EKUBG wireless card. That model specifically supports wireless N technology.

In a Google discussion, customers are confused on why the Nexus One has a wireless N chip, but Android OS does not support wireless N because of reliability issues with the software. It was clear that wireless N was in the plan for the Nexus One, but was not implemented fully. Despite the fact that Google does not support wireless N, cyonogen has released a modified Android ROM with N connectivity enabled.

Android and Me is reporting that Broadcom and Google have released a new wireless driver for the Nexus One that addresses issues with wireless N reliability, and seems to have fixed the problem.

There are rumors that Google is planning on using this driver in Android 2.2 and with it, enabling wireless N connectivity with Android devices, specifically the Nexus One.

It is unknown when the Android 2.2 update will be released to the public and nothing has officially been announced from Google.