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System-in-package (SiP) design provides a unique system integration and manufacturing capability that has clear system development benefits that span cost, time-to-market, reduced form factor and opportunity for reduction in power. Many design systems software customers are producing some form of SiP design today. However, SiP design is still considered to be an expert design process that is not scaleable as a general design solution. There are many design challenges that must be addressed before a high-quality SiP design solution can be developed that would enable SiP as a mainstream design solution. The paper demonstrates both design challenges and solution concepts for creating a high-quality design solution from system capture through manufacturing. It would be impossible to address the details of the entire SiP design challenges properly in a single paper; therefore this paper focuses on "some" of the key design challenges that have a significant impact on design tools, methods and flows. The design solution gap between current capabilities and practices, and what is required for SiP are used to guide the arguments presented.