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In the course of technology development, decisions must be made about the nature of future progress. To aid in this decision‐making process, Technical Cost Modelling has evolved from traditional cost modelling methodologies in order to accurately predict the dynamics of a system of manufacture. As an example of the utility of this methodology, a new MCM technology has been chosen for cost analysis: deposited dielectric on laminate (MCM‐D/L) electronic packages. For this illustration, the cost drivers are determined and cost/performance trade‐offs with MCM‐D and MCM‐L analysed. With this disciplined approach to cost prediction, technology development cost issues can be decided thoroughly yet fairly quickly.

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