NVIDIA's C60, the next-generation integrated graphics chipset for the Intel platform, isn't ready yet and will probably only come out by the end of this year. This leaves some space for ATI:
Therefore Intel was talking with its strategic cross licensing partner ATI and gave those guys the chance to earn some money from its chipset business unit. ATI will end up in many Intel low end graphic boards and you can expect many OEM systems.
It's a very simple story, ATI will replace all 915 designs with its Xpress 200 motherboards and for the first time you might even have a chance to play some games on those integrated boards.
This means overnight ATI has become the largest integrated chipset player. Currently they are pumping out hundreds of thousands of chipsets and these numbers are soon said to reach the millions as the entry-level IGP chipset market is a pretty big one. More details at The Inquirer