Intel announced a new 45nm architecture to be introduced next year. The project codenamed Nehalem will offer four cores in one chip. It also moves graphics processing to the processor chip itself (bad news to Nvidia). Nehalem also integrates a memory controller within the processor chip. All of this system on chip integration will help reduce the power and boost the performance enabling Intel to improve their product line against AMD. AMD on the other hand will be offering the Fusion architecture that incorporates graphics technology from ATI in the processor chip. AMD’s Opetron processor chip already includes a memory controller which made the Opetron really popular in the server market.
Both companies are looking betting heavily on the mobile market (cell phones and laptops … which in my opinion will become one and the same very soon).