Gizmos will drive adoption of graphics enabled chips

Market watcher iSuppli has said that ultraportables and tablets will drive widespread adoption of graphics-enabled microprocessors.

In a report released yesterday, iSuppli said that fuelled by strong netbook sales and form-factor-pushing device, worldwide shipments of graphics-enabled microprocessors will grow like topsy.

It said that such microprocessors are under the bonnet of one out of three notebooks PCs at the moment, but by 2014 that figure is expected to reach four out of five.

Matthew Wilkins, an iSuppli principal analyst, said in a statement that the booming popularity of products like ultraportable notebooks and Apple’s iPad has put the spotlight on products with small and new form factors.

PC makers need highly integrated chips that use less power and generate less heat, thus allowing smaller form factors.

“By integrating functions that normally would be implemented in a separate graphics chip, graphics-enabled microprocessors play a key role in aiding this effort,” Wilkins said.

iSuppli thinks that ultraportable PCs are currently the fastest-growing segment of the notebook market, with global shipments expected to double between 2010 and 2014.

By the latter date, graphics-enabled chip penetration in such devices is expected to reach 90 percent, according to the report.

Intel has cornered the market with its iCore I Series products, which feature HD on-chip graphics this is even without releasing “Larrabee.”

AMD will also do well with its upcoming Fusion APUs. The first of these APUs, dubbed “Llano” and “Ontario,” are due out in the first half of 2011, according to AMD officials.

However rising sales of these microprocessors is expected to have a negative impact on sales of standalone graphics chips and will fall to 62 million in 2014, down from 73 million in 2009.

This is bad news for GPU-maker Nvidia which depends on the stand alone chip for its survival.