Because this rumor just sounded crazy and no one was even sure if it was possible physically or financially, I went to see what kind of tech IBM could use to even make such a rumor plausible.
I'm no computer scientist and not really a techie either, but I did manage to come across this
10 IBM Breakthrus in the last Decade (It' s from 1997 - 2007)
http://www.ibm.com/ibm/ideasfromibm/us/chips/102207/index.shtmlBut only really pay attention to those since 2007 (the last 4)
High K - new material that means smaller, more efficient and less power hungry chips
EDRAM - new RAM type to replace the SRAM on die. They c an now fit more than 3X the amount in the same space
3D Chip Stacking - using a silicon glue IBM can stack the chips on top of each other for more power and less power usage
Airgap Tech - Nanotech that provides for better cooling to allow better chip efficiency and less power usage.
I didn't find anything that listed other break throughs since then as plainly listed as that, but even combining those 4 techs, is it possible to stack the RAM on the chip to reach 768MB of eDRAM or would that no longer be considered "embedded"?