Any source about that?
I am not aware that AMD drivers are capable to update the GPU firmware. Last time I saw a microcode update was on my intel CPUs last year due a security bug..
FWIW amd gpus using microcode (and different firmware files for different parts of the chip) isn't exactly a big secret. You can find the firmware for instance in the linux kernel repo (
https://git.kernel.org/cgit/linux/kernel/git/firmware/linux-firmware.git/tree/amdgpu) - this should generally be the same as what's used by the closed source driver. The history is a bit lacking, you'd have to poke in the kernel driver parts to maybe learn a bit more about it (there's sometimes files with numbers in them, maybe the driver only loads one of them and so on, I don't know off-hand).
For the MEC and MEC2 firmware, these are all 256kB for GCN3 + GCN4 parts, so max size doesn't look like an issue to me for any gcn3 or newer part (if you look at the files, you can actually see they are only used 1/4 or so, the rest is just empty/repeating bytes). GCN1 (in the radeon directory) only seems to have ~8kB MEC files, whereas GCN2 had ~16kB ones.
(There's way more firmware for these chips, there's ce, mc, me, pfp, rlc, sdma, smc, uvd, vce parts apart from MEC, except for APUs which ditch mc as that's presumably part of the cpu...)
edit: btw, using firmware for gpus is an OLD feature. On the radeon line of gpus, it actually predates radeons... rage 128 was the first one (afaik) to feature firmware for the cp (2kB firmware file). Albeit all the way up from rage 128 to r520, there was just this firmware file for the command processor (all very similar too).