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In this paper, we present a series of measurement and simulation experiments that were accomplished to check the order of magnitude of the error caused by neglecting the temperature dependence of the dynamic compact models of packages. We present a methodology to create nonlinear, temperature dependent compact models. With this methodology we created temperature dependent compact models of packages based both on measured and simulated results and compared the behavior of the temperature dependent model to the temperature independent (linear) model. We have found that neglecting the nonlinearity is acceptable in a moderate temperature range. If the temperature excursion remains below 60-80°C the error is expected to be less than 2-3%. For higher temperature rise the use of nonlinear compact models is recommended.