AMD launches integrated graphics chipset

The merged company announced the AMD 690 chipset on Wednesday, the first product from AMD to feature a graphics processor from its ATI division integrated into a chipset for its Athlon 64 processors. The 690 uses ATI's X1250 graphics chip, and can handle HDMI (high-definition multimedia interface) video.

This was the goal of AMD's $5.4 billion purchase of ATI in July, to offer its PC customers a complete skeleton for a PC from a single source. Chipsets are a vital link in a PC, connecting the processor with memory and input/output ports. Adding integrated graphics means that PC users don't need a separate graphics card, which reduces the overall cost of the PC.

Prior to the acquisition, AMD depended on partners to make integrated graphics chipsets for its processors. Intel, however, has been building chipsets with integrated graphics for several years, and most PC buyers choose a system with integrated graphics.

AMD plans to keep using chipsets from partners such as Nvidia, but now has its own products to offer as well. It also makes it easier for the company to test and validate a combination of processor and chipset for its PC customers.