Intel said at the IDF that it will start integrating graphics into its processors when it reaches the 32nm process:
Nehalem makes it possible as once you move the memory controller on the CPU, the graphics wants to be there. It is not clear if the first Intel's CPU+GPU will be two cores on a die or two packages but the next generation one looks like it will all be on a single chip.
The way we understood in 45 nanometre we are talking about Nehalem CPU and a GPU on a single chip that has been developed separately while in 32 nanometre they make them together from the day one.
The first 32nm CPU+GPU from Intel is expected in 2010 and the firm claims the graphics solution will perform ten times better than today's integrated graphics solutions (from Intel).