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Modern automotive as a distinctive and enormous market is undergoing radical changes due to increasingly embedded electronics systems inside automobiles. These changes are considered as a new phase in the automotive industry, which enables automotives to be more intelligent and reliable. As witnessed in the automotive industry development in the last decade, electronic devices play a critical role in various automotive systems, such as in the power control system, chassis control system, security system, and even in the entertainment system; and indeed more than 70% of the technical innovations in automotives nowadays are due to electronics systems. In general, there are 4 main classifications in automotive electronics. namely, engine/powertrain, body/chassis, safey/security and telematics/entertainment, where keyless entry, tire pressure monitoring system (TPMS), air bag, collision avoidance and adaptive front-light systems are identified as the 5 most promising automotive electronics applications by Year 2010. To support the continuous development of automotive electronics, advanced packaging technology definitely represents one of the key enabling technologies. In tins paper we select TPMS as an example to demonstrate the role of advanced packaging in product evolutions requiring multiple functions within a confined space.