Intel unveiled some details around a combo processor-graphics chip at the Intel Developer Forum in San Francisco today. Code-named Sandy Bridge, the chip combines a microprocessor and a graphics processor onto a single, silicon chip.

Prototypes of Sandy Bridge are currently available, with plans to begin shipment to customers early next year. Intel’s going after low-end desktops and laptops with Sandy Bridge, with an overarching effort to prove that such a combo chip can actually become a viable reality.

VentureBeat outlines Intel’s uphill battle with the processor-graphics chip, noting its previous failed attempts to create something similar in the past. With few details and lacking first-hand experiences around the chip, it’s still a question of whether or not Intel’s latest will pose a threat to Nvidia, manufacturer of stand-alone graphics chips, and other industry competitors. From VentureBeat,

Intel’s Otellini said during the company’s recent earnings call that Intel was accelerating its investment in new 32-nanometer manufacturing technology because of strong demand from PC makers. Meanwhile, Advanced Micro Devices is preparing to launch its own hybrid chips, under the Fusion brand name, early next year.

Nvidia, meanwhile, continues to be a naysayer on the capabilities of hybrid chips and is skeptical of Intel’s (as yet unreleased) performance claims.

Some of the potential issues with Intel’s combo chip include missing support for most Microsoft standards, which are still prevalent in today’s PC and notebook environment. To that end, VentureBeat goes on to say that Intel has indicated ongoing efforts to improve Sandy Bridge. But Intel’s combo chip may still pose a huge threat to the industry. Mark “Rizzn” Hopkins comments:

“Intel is close to killing the GPU with their current offerings. The Intel i7 Six-Core processor is at the heart of the machines we’ve designed for our live streaming work on #theCube, and in benchmark tests we’ve done, it has the graphics processing horsepower to handle most off-the-shelf, graphics intensive games with an underpowered dedicated GPU.”

Even as Intel expands its business beyond core chip sets, the company remains dedicated to its competencies in this arena. The processor-graphics chip straddles many of Intel’s future goals around the mobile industry, particularly as this pertains to gamers.