Numerical simulation plays an important role in product design. Its accuracy relays on a detailed description of geometry, material models, load and boundary conditions. This paper focuses on a new approach of FEM material modeling of three commercially available molding compounds. Curing shrinkage, modulus of elasticity and coefficient of thermal expansion were measured and implemented into commercially available FEM code Ansys. Fringe pattern technique has been used to measure warpage of bimaterial strips. Then FEM simulation of bimaterial strips were done and compared with experimental results. Curing shrinkage has been modeled in an effective way. Its accuracy has been checked on one of the materials by creating bimaterial strips with three different geometrical dimensions, that is varied thickness of mold and copper substrate. © 2011 IEEE.