Texas Instruments and General Electric have been involved with a program to establish a Merchant Market Multichip Foundry at TI based upon the GE developed high density interconnect (HDI) multichip module (MCM) technology. This technology has been successfully applied to more than 60 complex MCM designs for aerospace, computer and telecommunication applications. The HDI technology embeds bare chip within a thin film interconnect structure eliminating the need for wirebonds or TAB attach. This unique MCM technology has demonstrated higher performance, higher density and higher reliability than any other available technology. The embedded chip feature provides a robust structure that is able to withstand high thermal cycles, high shock and high vibration environments.This paper describes semiconductor evolution processes that have driven the recent developments in MCM technology and will describe the leading chips last MCM technologies and the basic HDI chips first technology. The ongoing evolution in automotive electronics and its effects on packaging technologies is also described. A development plan for the transition of the current higher cost MCM technologies to a reduced cost process aimed at high volume, high yield automotive applications is provided.This technology will be able to survive the thermal, mechanical and chemical environment for underhood electronics. This paper will describe a high yield non-hermetic approach to high reliability in harsh environments.