Reliability issues associated with moisture have become increasingly important as advanced electronic devices are nowhere more evident than in portable electronic products. The transition to the Pb-free solders, which require higher reflow temperature, makes the problem further exacerbated. Moisture absorbed into semiconductor packages can initiate many failure mechanisms, in particular interfacial delamination, degradation of adhesion strength, etc. The absorbed moisture can also result in catastrophic crack propagation during reflow process, the well-known phenomenon called popcorning. High vapor pressure inside pre-existing voids at material interfaces is known to be a dominant driving force of this phenomenon. This paper reviews various existing mechanisms of water accumulation inside voids. The procedures to obtain the critical hygroscopic properties are described. Advanced numerical modeling schemes to analyze the moisture diffusion phenomenon are followed with selected examples.