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Recent advances in the miniaturization, functionality, and integration of integrated circuits and packages, such as the system-on-package (SOP) methodology, require increasing use of microvias that generates vertical signal paths in a high-density multilayer substrate. A scanning projection excimer laser system has been utilized to fabricate the microvias. In this thesis, a novel technique implementing statistical experimental design and neural networks (NNs) is used to characterize and model the excimer laser ablation process for microvia formation. Vias with diameters from 10 50 micrometer have been ablated in DuPont Kapton(r) E polyimide using an Anvik HexScan(tm) 2150 SXE pulsed excimer laser operating at 308 nm. Accurate NN models, developed from experimental data, are obtained for microvia responses, including ablated thickness, via diameter, wall angle, and resistance. Subsequent to modeling, NNs and genetic algorithms (GAs) are utilized to generate optimal process recipes for the laser tool. Such recipes can be used to produce desired microvia responses, including open vias, specific diameter, steep wall angle, and low resistance. With continuing advancement in the use of excimer laser systems in microsystems packaging has come an increasing need to offset capital equipment investment and lower equipment downtime. In this thesis, an automated in-line failure diagnosis system using NNs and Dempster-Shafer (D-S) theory is implemented. For the sake of comparison, an adaptive neuro-fuzzy approach is applied to achieve the same objective. Both the D-S theory and neuro-fuzzy logic are used to develop an automated inference system to specifically identify failures. Successful results in failure detection and diagnosis are obtained from the two approaches. The result of this investigation will benefit both engineering and management. Engineers will benefit from high yield, reliable production, and low equipment down-time. Business people, on the other hand, will benefit from cost-savings resulting from more production-worthy (i.e., lower maintenance) laser ablation equipment.