Isn't IGPs performance like 6600 GT to 7600 GT performance range at best?
They could do the same with a far smaller GPU, that would bring the Llano manufacture cost down. Especially if those SPs aren't being used.
Unless AMD is just adding those those SPs there for physics and other OpenCL accelerated applications.
Although considering the recent AMD/ATi philosophy of going for the smaller/less complex (not for some of the current CPU projects that are legacy from years, but projects like BD and Bobcat) possible approach, that doesn't seem right.
IGP performance is typically on par with the lowest add in card of the generation. It's generally the exact same chip, and low end cards aren't equipped with fast memory. Generally, AMD's and nvidia's igps perform on par with the absolute low end cards targetted for HTPC use. By the time fusion launches (2011), it should only be targeting the next step up of cards, the very beginning of the cards that are at all useful for gaming.
I think the top IGPs may have already surpassed 7600gt performance though, nvidia's top igp offers roughly 8500gt to 8600gt performance I think.
There's a lot of graphics tasks that aren't that bandwidth limited, and AMD may share the cache with the igp (not likely in the initial version of fusion), add in dedicated memory on the motherboard (very likely since they've done it before), or use additional bandwidth compression techniques (limited effectiveness).
A ddr3 equipped AM3 system can already offer up to 21GB/s of memory bandwidth. That's 7600gt level, with much more processing power. If they embed GDDR5 onto the package they could easily provide a high level of performance. The performance level of fusion should be about on par with cards that typically are equipped with 50-60GB/s of memory bandwidth. A single 64 bit high speed GDDR5 chip could accomplish that if they can split the memory up (high speed framebuffer, then use system memory for textures), that would work well.
My guess is:
Most fusion setups will simply use system memory. The performance of fusion will be limited, but one of the most important parts of dx11's tessellation (and procedural content in general) is that it greatly reduces memory bandwidth requirements. Fusion's low memory bandwidth but comparatively high processing power will make it useful for both OpenCL and DX11, while not performing as well at dx9 games.
'High end' fusion setups will use high speed DDR3 (21GB/s memory bandwidth) and perhaps have an extra hypertransport link dedicated to slow speed GDDR. Combined memory bandwidth will be 40GB/s to 50GB/s, rather than actually using a GDDR5 chip that can obtain that bandwidth on its own.
Crossfire-X will make a return, and ATI will introduce dynamic load balancing. ATI's choice of equipping all its cards with the same tessellation unit will pay off, anyone who buys an AMD fusion system will double tessellation performance. The IGP will be too slow to be utilized beyond that, unless using an entry level gaming card (maybe 5600 level performance), but it will help AMD's systems compete with nvidia's lower end cards in dx11 performance.
Although I doubt it will be used, tile based deferred rendering would also solve fusion's bandwidth problem. AMD did use it in its mobile parts and xbox 360, and Intel's IGPs use it. It would also fit well with the compute power of llano, but most likely weak fillrate and memory bandwidth.
AMD's big push of fusion will hurt their margins somewhat (~400 sps is about 4x too many for a 2011 IGP, and if it hits 1Ghz+ clock speeds it's going to beat last gen's mid range cards), but they'll try to grab the low end laptop gaming market, the desktop gaming market, and the media center market. Fusion is their attempt to differentiate themselves from Intel, "our processors may not be as fast, but we offer a better and more capable overall experience."
Edit: I'd like to add that phone SOCs are closing in on PC igps. The top end snapdragon and powervr cores (along with nvidia's tegra 2) may not be in any shipping products, but they offer performance well beyond the igps of yesteryear (think geforce 6150). I'm not sure about Intel's latest IGP, but there are cell phone gpus faster than all their previous options. CPUs are also reaching the point of good enough, so having much better cpu and gpu performance may be necessary to keep people from migrating to lower cost alternatives. (tablets, smartbooks, smartphones)