Cordwood construction can save significant space and was often used with wire-ended components in applications where space was at a premium (such as missile guidance and telemetry systems) and in high-speed computers, where short traces were important. In "cordwood" construction, axial-leaded components were mounted between two parallel planes. The components were either soldered together with jumper wire, or they were connected to other components by thin nickel ribbon welded at right angles onto the component leads. To avoid shorting together different interconnection layers, thin insulating cards were placed between them. Perforations or holes in the cards allowed component leads to project through to the next interconnection layer. One disadvantage of this system was that special nickel leaded components had to be used to allow the interconnecting welds to be made. Some versions of cordwood construction used single sided PCBs as the interconnection method (as pictured). This meant that normal leaded components could be used. Another disadvantage of this system is that components located in the interior are difficult to replace.

Before the advent of integrated circuits, this method allowed the highest possible component packing density; because of this, it was used by a number of computer vendors including Control Data Corporation. The cordwood method of construction now appears to have fallen into disuse, probably because high packing densities can be more easily achieved using surface mount techniques and integrated circuits.

A cordwood module.

Surface mount components, including resistors, transistors and an integrated circuit

Surface-mount technology emerged in the 1960s, gained momentum in the early 1980s and became widely used by the mid 1990s. Components were mechanically redesigned to have small metal tabs or end caps that could be soldered directly on to the PCB surface. Components became much smaller and component placement on both sides of the board became more common than with through-hole mounting, allowing much higher circuit densities. Surface mounting lends itself well to a high degree of automation, reducing labour costs and greatly increasing production and quality rates. Carrier Tapes provide a stable and protective environment for Surface mount devices (SMDs) which can be one-quarter to one-tenth of the size and weight, and passive components can be one-half to one-quarter of the cost of corresponding through-hole parts. However, integrated circuits are often priced the same regardless of the package type, because the chip itself is the most expensive part. As of 2006, some wire-ended components, such as small-signal switch diodes, e.g. 1N4148, are actually significantly cheaper than corresponding SMD versions