Intel Executive VP Didi Perlmutter mentioned Arrandale at the IDF. This dual-core has chipset with integrated graphics on the same socket and it should launch early next year.

He even talked why it is good to have both graphics and CPU on the same socket, and mentioned that Turbo can help give more performance to a CPU or graphics depending which of two is cooler.

This makes perfect sense and this is Intel’s first step toward a holy grail of integrating graphics on the CPU and making communication faster, and chips smaller. This will happen with Intel chips, but hopefully in next few years with the new Larrabee core inside.

Fusion is the way, and Intel knows that, but didn’t want to start talking about it 2006 when they knew that they won’t get an IGP on the CPU before at least 2010 or late 2009.