Intel Set to Integrate Memory, Graphics Controllers into Microprocessors
 

Intel Corp. does not currently see many advantages that memory controller built-into central processing units (CPUs) would bring, as the firm has managed to increase performance without integration of memory controller with its forthcoming Core 2 processors. Nevertheless, in future the firm would integrate the appropriate circuits into its CPUs, moreover, it could add graphics capabilities to its chips, according to the company.

Didn't they say the same when they announced the Intel MMX technology?

considering the amount of boards sold with integrated intel graphics, this makes perfectly sense