It looks like Intel are going to pull the plug on their first "Fusion" (CPU+GPU) processors, codenamed Auburndale and Havendale for the notebook and desktop platforms respectively.

Intel feels it's the wrong time to introduce these chips to market (mostly due to the economic crisis), but the Fusion concept won't be dropped. If this report holds true, Intel will wait until sometime during Q1'2010 before it releases a Fusion processor known as Arandale.

The main difference between Arandale and Auburndale/Havendale is that it will be a die-shrink down to 32nm as opposed to the first expected 45nm debut for Fusion and will likely sport more L3 cache (around 6MB) than the 4MB that was said to be used on Auburndale/Havendale processors.

More information can be found here.