Penetration of microprocessors with built-in graphics core this year will reach approximately 50%, based on the recent forecast of IHS iSuppli market tracking firm. The adoption of chips with integrated graphics is mainly a result of rather rapid product family transitions by Advanced Micro Devices and Intel Corp.

According to IHS iSuppli, the year 2011 will be the biggest period yet for microprocessors with built-in graphics core, as the penetration of such chips reaches 50% in notebook PCs and 45% in desktops, according to the latest IHS iSuppli research.

Global penetration of chips with built-in graphics in the notebook segment in 2011 will rise by a dramatic 11% from 39% in 2010. With worldwide notebook shipments expected to amount to more than 230 million units this year, microprocessors with built-in graphics cores will be in about 115 million notebooks by the end of 2011.

For desktops, penetration of central processing units with built-in graphics core this year will increase by a robust 9% points from 36% in 2010. With desktop PC shipments experiencing a resurgence in 2010 and 2011 thanks to strong corporate replacement demand, IHS expects shipments of microprocessors with built-in graphics core-equipped desktop PCs to exceed 63 million in 2011.

By 2014, 83% of all notebook PCs and 76% of desktop PCs worldwide will ship with microprocessors with built-in graphics cores.

Despite their rising popularity, microprocessors with built-in graphics cores are unlikely to offer the same high level of performance as discrete graphics cards, IHS believes. Discrete graphics cards will remain the solution of choice for leading-edge graphics, providing high-end performance for applications such as games. In comparison, microprocessors with built-in graphics cores could be used to satisfy the needs of the mass PC market that does not require high-level graphics functionality, with the product targeted at the mainstream and value PC segments.

As a result, while some cannibalization of the discrete graphics market will occur because of microprocessors with built-in graphics cores, erosion of the discrete market will not be significant in the short to medium term, IHS believes.

Tags: AMD, Intel, Fusion