Intel is infamous for this thing their love with HP Libs why do you think Raptor lake clocks 6Ghz they freaking relaxed the CPP from 54nm to 60nm for Golden Cove/Raptor Cove to hit 5+ GHz.
We are talking about GPUs here, not CPUs.
In case of GPUs you can pretty easily widen them for more performance unlike CPU, diminishing returns are not a real issue, If you don't go ridiculously wide.
HP allows this performance increase that is why it's HP B580 Is 72 MTr/mm2 for whole die vs 92 for N5 logic I guess the media engine is taking quite the space.
What performance increase, be more specific? Without HP It would clock at only 2GHz or what do you mean exactly?
B580 has 72 MTr/mm2 density
AD106 has 120.5 MTr/mm2 density
AD107 has 129.5 MTr/mm2 density
Nvidia has 67-80% higher density, that's simply a huge difference.
I believe Intel could have dropped clocks to just ~2GHz(-30%) and put 50% more units inside instead and be smaller and have better efficiency while performing the same by using HD libraries, but this is only my belief.