Abstract: Recently, the number of wearable devices increases due to demands. Therefore, a considerably light, thin and high complexity Integrated Circuit (IC) packaging is desirable. However, several critical challenges exist in implementing ICs in the packaging manufacturing industry. Die cracking and warpage due to high stress are the common failures. These conditions will worsen when using small and thin dies. Package stresses are predominantly caused by the mismatch in the thermal expansion coefficients of the involved materials. This study conducts experimental studies on the critical packaging processes such as backgrinding, wafer sawing, die attachment and wire bonding, using 18×14 mil die size. The manufacturing process stability is developed by process optimization, monitoring and control. Several critical challenges and proposals for device miniaturization in IC packaging are highlighted in conclusion section.