Over the past several decades in the microelectronics industry, devices have gotten smaller, thinner, and lighter, without any accompanying degradation in quality, performance, and reliability. One permanent and deniable trend in packaging as well as wafer fabrication industry is system integration. The proliferating options for system integration, recently, are driving change across the overall semiconductor industry, requiring more investment in developing, ramping and supporting new die-, wafer- and board-level solution. The trend toward 3D system integration and miniaturization in a small form factor has accelerated even more with the introduction of smartphones and tablets. In this paper, the key issues and state of the art for system integration in the packaging process are introduced, especially, focusing on ease transition to next generation packaging technologies like through silicon via (TSV), 3D wafer-level fan-out (WLFO), and chip-on-chip interconnection. In addition, effective solutions like fine pitch copper pillar and MEMS packaing of both advanced and legacy products are described with several examples.