The following has embedded LINKS which come from http://www.howstuffworks.com  There is a lot of cool info there but take care from the popups and ad cookies.

Microelectromechanical Systems

MEMS have a movable or deformable reflective surface on top of a semiconductor chip. The chip generates voltages in response to digital information. The voltages change the shape of the reflective surface rapidly and in a controlled way to produce the image that was encoded by the digital information. The projected light bounces off the reflective surface and gets collected by the projector lens.