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In this paper, a compact power amplifier module integrated in a thin film multi-chip module (MCM-D) interconnect technology is presented. The active device of the amplifier is a SiC based AlGaN/GaN high electron mobility transistor (HEMT). Measurement results show that the prototype module can exhibit an output power of 1.6 W and a drain efficiency of 28% at 5.5 GHz. The major advantage of using a system-in-package (SiP) approach with MCM-D technology is the dramatic cost reduction compared to an MMIC and the size reduction compared to a hybrid PCB approach.