Intel has plans to integrate 4 cores with graphics in one core. In fact, it is said that Intel is able to integrate graphics even in notebooks processors.
According to fudzilla, it is reported that Intel confirmed that an integrated graphics on a CPU comes on 45nm Nehalem CPUs. The product is scheduled for late 2008 or early 2009 just about the time to compete with Fusion. Intel also claims that the IGP will be a few times faster than current IGPs.
Will Intel slip again with its promises on IGP performance ? We shall see.