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.