Maybe the reason why the Mac mini hasn't been updated in such a long time?
Highly doubtful. If look at the Intel graphic that Engadget attached to their story on the topic.
https://www.engadget.com/2017/11/06/intel-core-h-8th-gen/
This is more about consolidating board space that was already in play. This makes Apple's work a bit easier to design a MBP 15" class laptop. The VRAM and GPU are weaved into one tidy package that Apple can just drop onto the an even smaller motherboard ( and perhaps use the space the motherboard gives up to add battery or more system RAM).
The packaging of HBM2 into this Intel module isn't going to be inexpensive. This will be a top end CPU package part. ( AMD isn't going to sell that GPU die at super deep discounts to Intel either. ). This part is being aimed at systems where there
already was a discrete GPU. Not at systems where there was none before.
This isn't Intel "giving up" on iGPUs. This is Intel basically grabbing more to the motherboard vendor business by subsuming the assembly of several discrete parts into one stop solution. It will keep their average CPU package price higher even as price war with AMD heats up.
This thing has Apple written all over it though. Easier to do MBP 15" class of laptop is exactly what this aimed at. ( lots of Dell/HP/etc models too in the 15" desktop replacement zone too. )
This might trickle down to a revised Mac Mini (if it is given a bigger motherboard budget), but it is doubt they were absolutely just waiting for this.
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I feel like this could be a big boost for the 13" MBP specifically. I'd still probably go for the 15" but this is cool AF.
Probably not in that this combined package is likely bigger than the current CPU+iGPU package currently in the 13" MBP. See picture above. The MBP 13" doesn't have copious extra motherboard space now and this thing is bigger. This is multiple dies inside of one package.
https://www.anandtech.com/show/1200...with-amd-radeon-graphics-with-hbm2-using-emib
That doesn't get you smaller (or small size) chips. What this does is allow multiple dies to be placed with more efficiency. It is smaller from the old multiple discrete chip perspective, not from any one of the previously discrete chip packages.
The 'Holy Grail' for Intel would be to get almost the entire computer onto one package you buy from them. The CPU package is like a black hole sucking in other formerly discrete parts from a historically typical motherboard.