Space is always a premium when it comes to handhelds, so any technology that helps shrink parts and consolidate real estate better is one worth paying attention to. Today, TSMC and Nvidia announced the first fully-functional sample GPU that has embedded DRAM, using the 65nm process. Calling it "eDRAM", it will not only allow the GPU a much shorter patch to memory, but also allows for more memory to be used for cache which can provide performance boosts. More "on-GPU" memory leads to more memory bandwidth and potentially even opens the door to self-contained graphics units that have everything inside a single die.
The new GPUs are aimed at handheld consoles, digital media players and other embedded devices that require powerful graphics cores.