With the completion of AMD's acquisition of ATI, AMD has announced its working on new CPU/GPU silicon that integrates the CPU and graphics processor into a single unit. The upcoming silicon is currently codenamed Fusion and is expected in the late 2008 or early 2009 time frame. AMD claims Fusion will bring:

The Fusion chips aim to increase performance-per-Watt for applications such as 3D graphics, digital media and technical computing. In a press statement, AMD suggested the processors will leverage both its coherent HyperTransport interconnect as well as PCI Express to link to external co-processors. The Fusion plan could give AMD a lead in delivering multi-core products using different kinds of processing blocks. Today, Intel and AMD are in a neck-and-neck battle to deliver CPUs with two and four x86 cores per chip.