Packaging technology applicable to SiC power devices operated in an extended junction temperature range (Tjmax > 200°C) must be developed in order to create much more compact and cost-effective SiC power modules. This paper describes some of the technical challenges involved in improving the reliability of the critical package components—die attachment system, Al wire bonds and encapsulation—in direct contact with SiC devices inside the power module. Two numerical targets, (I) 3000 hours for a storage test at 250°C and (II) 3000 cycles for thermal cycling between -40°C and 250°C, were achieved through optimization and various improvements.