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This paper presents a new package design for multichip modules. The developed package has a flip-chip-on-chip structure. Four chips [simulating dynamic random access memory (DRAM) chips for demonstration purpose] are assembled on a silicon chip carrier with eutectic solder joints. The I/Os of the four chips are fanned-in on the silicon chip carrier to form an area array with larger solder balls. A through-silicon via (TSV) hole is made at the center of the silicon chip carrier for optional underfill dispensing. The whole multichip module is mounted on the printed circuit board by the standard surface mount reflow process. After the board level assembly and X-ray inspection, the underfill process is applied to some selected specimens for comparative study purpose. The underfill material is dispensed through the center TSV hole on the silicon chip carrier to encapsulate the solder joints and the four smaller chips. Subsequently, scanning acoustic microscopy (SAM) is performed to inspect the quality of underfill. After the board-level assembly, all specimens are subject to the accelerated temperature cycling (ATC) test. During the ATC test, the electrical resistance of all specimens is monitored. The experimental results show that the packages without underfill encapsulation may fail in less than 100 thermal cycles while those with underfill can last for more than 1200 cycles. From the dye ink analysis and the cross-section inspection, it is identified that the packages without underfill have failure in the silicon chip carrier, instead of solder joints. The features and merits of the present package design are discussed in details in this paper.