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I'm reading the Xilinx Spartan 6 user guides. They seem to make the distinction between a Spartan 6 FPGA device and a Spartan 6 FPGA package.

I'm assuming that an FPGA package contains an FPGA device. What exactly is are FPGA packages, and what is the need for the package/device distinction?

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"Device" is a functional perspective, i.e. the thing which does the actual work.
"Package" is a mechanical perspective, i.e. how it is mounted and connected.

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The device is the silicon itself, and the package is the black plastic moulding with metal pins or solder balls. The same device may be available in different packages (BGA, QFN, TQFP, etc.).

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