Intel to Improve Processor Graphics, Challenging AMD

Intel Corp., the world’s largest semiconductor maker, will show off its first chip design that has graphics capabilities built into the processor, stepping up a threat to Advanced Micro Devices Inc. and Nvidia Corp.

Chief Executive Officer Paul Otellini will demonstrate the product next week at the Intel Developer Forum in San Francisco, the company said. The design, known as Sandy Bridge, will go into production next quarter and become the basis for Intel’s entire lineup.