Intel is planning on releasing a major upgrade to it’s Atom CPU series sometime in 2010, according to their latest roadmap. It’s dubbed “Medfield” and it will be 32nm, as opposed to the current 45nm Atoms (currently “Diamondville”, “Pineview” in 2009).
Part of this process will add components (memory controller, etc.) to the CPU, reducing the need for a separate controller/chipset.
USB Securities apparently claims that “Medfield” will not only incorporate things like memory I/O, but will also have a built-in graphics core. All of this together should reduce space, cooling, and power requirements, as well as help increase performance and battery life.
Read: Register Hardware