3D packaging stacks separate chips in a single package to save space without integrating the chips. Monolithic 3D ICs build components in layers on a single wafer then dice it, avoiding alignment and bonding issues. Multi-wafer 3D ICs build components on separate wafers, which must be aligned, bonded, and thinned with vertical connections added through silicon vias. 3D ICs promise benefits like reduced cost from improved yield, lower power from shorter wires, and new design possibilities from added connectivity, but challenges include heat dissipation, design complexity, and testing of independent dies.