According to a news-story at Semiaccurate web-site, ATI’s next-generation line of graphics chips is indeed called Southern Islands. Moreover, due to problems at TSMC, Southern Islands will feature hybrid design with several logic elements of Northern Islands and stream processors from Evergreen. The actual chips will be made using already proven 40nm process technology, which will allow ATI to refresh its GPU lineup this year and offer something more powerful than today.

ATI reportedly preps “Southern Islands” family of graphics chips