This article provides a review of the capabilities, future directions, and technology challenges for semiconductor chips and packages as they apply to high-performance and supercomputer applications. Semiconductor chip technology has resulted in dramatic device density improvements over the last 20 years. Scaling theory predicts that continued improvements will be possible if the technological problems associated with patterning, doping, interconnection, density, yield, and cost can be solved. The issues associated with these challenges are discussed. Finally, the packaging needs to support advanced chip technologies are reviewed.