System-on-a-chip or system on chip (SoC or SOC) refers to integrating all components of a computer or other electronic system into a single integrated circuit (chip).[citation needed] It may contain digital, analog, mixed-signal, and often radio-frequency functions – all on one chip. A typical application is in the area of embedded systems.
If it is not feasible to construct a SoC for a particular application, an alternative is a system in package (SiP) comprising a number of chips in a single package. SoC is believed to be more cost effective since it increases the yield of the fabrication and because its packaging is simpler.
source: http://en.wikipedia.org/wiki/System-on-a-chip
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