The utilization of wide bandgap semiconductors in power modules, such as silicon carbide and gallium nitride, is restricted due to the thermal instability of the packaging materials, especially when the operating temperature reaches 200 °C or higher. The molding compound has become the most critical component in the semiconductor packaging technology. Nevertheless, the widely utilized epoxy molding compound (EMC) is not suited for the operational environment of third-generation semiconductor devices due to its low glass transition temperature (T g ). Consequently, more stringent criteria have been established for the thermal durability of polymer-based electronic packaging molding compounds. This review summarizes current research advances in polymer matrix composites for high-temperature molding compound applications. In addition to the typical commercial EMC systems, innovative resin systems such as cyanate ester resins (CEs), bismaleimide resins (BMIs), benzoxazine resins (BOZs), and phthalonitrile resins (PNs) are discussed in detail for their application as electronic package molding compounds. Finally, the prospects for developing next-generation polymer-based nanocomposites for improved semiconductor packaging are discussed along with some recommendations to overcome the current obstacles.