The cost of packaging in microelectronics is around 30% of total production costs, but this is rising at an alarming rate due to the increasing consumer demand for smaller and smarter portable electronic devices. In micro-systems, the costs of packaging can be up to 80% of total production costs. Technological advances to reduce packaging costs are therefore of pivotal importance to maintain the competitive edge of assembly companies. Moreover, with the exodus of high volume packaging and assembly companies to low-wage countries such as China and India, the manufacturing industry in Europe needs to revitalise itself by encouraging design and innovation that will allow European companies to produce assembly equipment and materials of tomorrow that will feed into the Asian market. Our approach of using microwave technology in bonding has significant advantages over technologies made available in the market. In our approach we don’t need a closed microwave oven. Through the open design we can do the placement, alignment and curing at the same time. The use of this technology in reel-to-reel manufacturing will be possible. Due to the higher level of integration and signifcantly shorter cycle times this new technology will give European packaging companies a clear competitive advantage particularly over their US competitors. Quality of the bonds will be improved as well due to better selectivity and special designed materials as well as the precisely adaptable frequency of the microwave. It uses pulsed microwave sources and relies on the selection of a few resonant cavities frequencies that are jittered (mode hopping). The two characteristics permit not only the avoidance of electrical discharges through arcing, but also the accurate curing of the paste at the location of interest, i.e. at the interface between a die and the substrate for example in the case of DCA. The project is driven bei 6 SME-IAGs who want to create this clear competitive advantage for theirmembers.