AMD has removed the covers from a new line of processors, set to be integrated directly with the CPU to bring high level of graphics to netbooks and small laptops.
The announcement, which took place during the company's financial analyst day, involved a new processor technology called 'Brazos' which will comprise of two new processor lines.
One will be 'Ontario' which will be used in netbooks and the other 'Zacate' which will be used in small laptops.
The processors will give direct competition to Intel's Atom chip, which is widely used in netbooks and laptops.
According to AMD, the processors, set to be targeted at devices with 10-inch to 13-inch diagonal screen sizes, were capable of integrating AMD Radeon 6000 series with the CPU of the device, giving AMD an edge over Intel when it comes to graphics.
The processors will also support Microsoft's DirectX 11 platform used by gaming and multimedia applications, something that Intel's Atom chip offers no such support for.