Cost concerns related to the development and manufacturability of multichip modules have limited the widespread use of MCM's for high-volume, low-cost applications. This paper discusses the many elements necessary to evaluate fully the financial effects of MCM programs. In particular, this paper evaluates a development program for a multichip module design targeted for a high volume automotive electronics control module. Often the added material costs associated with multichip modules prohibit MCM usage for low cost applications. This paper deals with the overall costs and savings associated with MCM development. While each decision to incorporate MCM's within a product design must be made individually, the analysis detailed below provides considerable insight into the overall systems cost involved with MCM's.