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We can stack lots of memory dies together these days. We'll see what Apple does there.
But the immediately obvious answer here is that the M1 has two memory chips off to one side, and there's a whole other 3 sides they could put memory chips on :-)
The floor plan has to be ready for that. The physical distance is not trivial so I doubt they would do that. You want the cache in between memory controller and the core, ideally.
I'm thinking their next silicon, not the M1. I don't think they will be releasing 32G hardware with the M1.
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