AUSTIN – Use of system in package is expected to grow 20% compounded annually through 2009, driven by wireless products, especially cellphones.

In a new report, System-in-Package: The New Wave in 3D Packaging, TechSearch International explores the technology advances and market drivers that have produced a renaissance in multichip packaging solutions.

How are SiPs different from multichip packages of the past? According to TechSearch one application – wireless products – stands out as a high-volume driver that did not exist a dozen years ago, when many multichip packages were first introduced.

According to TechSearch, SiP is a functional system or subsystem assembled into a single package containing two or more dissimilar die, typically combined with other components such as passives, filters, antennas, and/or mechanical parts. The components are mounted together on a substrate to create a custom, integrated product.

A variety of SiPs are found in the RF, digital baseband, and transceiver sections of mobile phones. The reason: SiPs deliver increased functionality and performance in small form factor for mobile communication, resulting in significantly greater adoption rates than any previous MCM. Emerging applications for mobile phones include mini hard disks and camera modules. Planar and stacked configurations are in use and several companies, including Philips, STMicroelectronics and SyChip, have introduced integrated passive substrate solutions.

SiP solutions are increasingly found in a broad range of additional market segments, including consumer electronics such as digital cameras and camcorders, automotive, military/aerospace, medical, computer, and telecom. SiP is forecast to hit a unit growth rate of almost 20% CAGR between 2004 and 2009, TechSearch says.