The development in electronics for automotive application shows a high speed of improvement over the last 20 years regarding downsizing of all components. This could be achieved despite the harsh environmental conditions we find in vehicles, especially in the engine compartment. Big changes have always required the development of new technologies regarding the production of electronic components. The paper shows technologies which are right now under development to allow the next steps regarding downsizing as well as some examples of possible applications. There is also information regarding the current obstacles for improvements beyond this point as well as basic ideas how to overcome some of them.