VentureBeat had an interview with Rick Bergman, AMD Senior Vice President and General Manager of the graphics product group, about graphics, the sweet spot and future products such as Fusion. Here's a snip about the Fusion project:
VB: Fusion — the plan to combine a graphics chip and a microprocessor that was the impetus for the AMD-ATI merger — was being planned alongside this sweet spot strategy. Now the first Fusion chip has been delayed again until 2011.
RB: We’re trying to broaden the definition of Fusion. We probably made an error two years ago when we said that Fusion is a combination of the GPU and the CPU (central processing unit) on the same chip. That’s just an implementation question. It may not make sense as we look for more and more diverse solutions of the GPU and CPU working together. There were challenges in doing it. When you start looking at more advanced manufacturing technologies, where you can shrink the size of each component more, it becomes easier to integrate them together.
VB: Will the 2011 product target a certain market?
RB: We are going after mainstream clients and a Netbook market. That’s new for our strategy.