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I do NOT think there is a single chip solution neither. However doing this with an FPGA-based platform is certainly doable. As already mentioned the Digilent Atlys Board could be an alternative since you have there 2 in/ 2 out HDMI ports. In case you consider working with FPGAs: First, I would suggest to start with the design of a HDMI transmitter and ...

The simple answer is "no, there is no single-chip solution." The reasons are already mentioned by Chris Stratton: - The two signals are not in sync, so at least one of the frames need to be re-buffered (typically, both will need to be, to be able to do the blend/overlay.) - HDMI in a living room typically carries encrypted signals, so you need to also do ...