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This presentation discusses latest developments in SiP technology and the challenges for design in terms of manufacture and reliability. It presents results from a UK government funded project that aims to develop modelling techniques that will assess the thermo-mechanical reliability of SiP structures such as (i) stacked die, (ii) side-by-side dies and (iii) embedded die. Finite element analysis coupled with numerical optimisation and uncertainty analysis is used is used to model the reliability of a particular package design. In particular, the damage (energy density) in the lead free solder interconnects under accelerated temperature cycling is predicted and used to observe the fatigue life-time. Warpage of the structure is also investigated.