Product differentiation is expected to accelerate and will encompass integration of product functionality into single and multiple die on package as well as multiple die/packages on board. Novel packaging designs will lead to incorporation of new materials and processes from which a comprehensive understanding of operating conditions at system and subcomponent level will be required to ensure reliability at minimum impact to cost & performance. Reliability tests, models and analysis must evolve to encompass emerging failure mechanisms and geometric effects not considered when standards were originally authored. This manuscript will show trends in packaging and materials along with examples of emerging failure mechanisms that need to be understood to ensure reliability in highly integrated products.