SiP, is a way to combine two or more ICs within a single package. This is in contrast to an SoC, where the functions are combined on those chips on the same die.
Since an SoC is basically all components on an IC (Integrated Circuit), every component is manufactured on the same manufacturing process. This means, when we say that the Snapdragon 855 is based on the 7nm manufacturing process, it means that the CPU, GPU, RAM, etc. are all manufactured on the same process as the entire SoC is manufactured using just one single die. Well, what is a die? A die is a formal term for a silicon chip comprising an integrated circuit. Die is plural, and dice is singular. Sometimes, the words die and the chip is synonymously used. In another word, a die is a micro-manufactured semiconductor component, while a chip is the packaged die (or multiple dice).
The circuitry is mapped to a Silicon die which is then transformed to a chip using different processes, and for those of you who are unaware of the development process of these chips.
An SoC is created using only one single die so that each component’s manufacturing process remains exactly the same. This takes up more room as the different ICs are put on the PCB next to each other and are scattered over a wider area.
On the other side, the SiP does not include all the elements in one single die but instead has numerous chips stacked on top of each other. This saves room as the ICs need not be scattered around the PCB, and piling them up does not increase the total thickness by much as the chips themselves have extremely small thicknesses. What this also means is that, because the SiP is not just a single chip, separate dies are used to create the individual ICs, which means that each part of the chip can be made using a different process.