During development of the semiconductor industry almost the whole segment of packaging has been shifted to the far east. Only a few packagers remained in Europe, focused on large scale production. At the Fraunhofer IZM, Berlin, Germany a plastic packaging line was designed to fulfill the need for fast, flexible and qualified service in low scale packaging and prototyping. This line consists of an epoxy multi-chip-die bonder, wire bonder? flip-chip-placement system, multi plunger molding system, laser marking and trimming station, lead forming and lead soldering. For solderball placement of flip-chips as well as EGA packages a laser solder ball placer is used. This machine has the ability of placing and simultaneously reflowing solder balls of various material and diameter. The IZM Mold-and Assembly-Line was installed, to offer small and medium sized production to industry. This center will be further used for package development. In this paper the recent applications, like mechatronics and the combination of multi chip Flip-Chip processes on different carriers including the encapsulation by molding are demonstrated. For production of CSP technology as well as for tape-EGA the Fiber-push connection method was used as an innovative key technology. All packages are subject of detailed reliability investigations. The presentation will focus on the moisture sensitivity of underfiller and molding compound. The results of accelerated aging tests and the different failure mechanisms for chip-scale-packages and few-chip micro BGA's are demonstrated. Improvements for processing conditions as well as material selection and design are discussed, in order to achieve packages with high reliability especially for harsh environmental conditions in automotive use.