The invention relates to a method for embedding a discrete electronic device in a chip module. The chip module comprises a multilayer substrate which comprises a plurality of electrically conductive layers stacked above each other and an electrically non-conductive layer arranged between each pair of electrically conductive layers. The chip module is configured to receive one or more chips to be mounted onto a top surface thereof. Each electrically conductive layer comprises one or more electrically conductive structures. A recess is provided in a side surface of the chip module. The discrete electronic device is inserted into the recess. A first electrically conductive connection between a first electrical contact of the discrete electronic device and a first electrically conductive structure is established. Further, a second electrically conductive connection between a second electrical contact of the discrete electronic device and a second electrically conductive structure is established.