Is an idea of integrating all components of a computer or other electronic system into a single integrated circuit (chip). 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 an SoC for a particular application, an alternative is a system in package (SiP) comprising a number of chips in a single package. However, SoC is believed to be more cost effective since it increases the yield of the fabrication and also its packaging is less complicated compared to a SiP.