Block placement within each device-containing layer is optimized under the constraint of a simultaneous optimization of interlayer connectivity between the device-containing layer and immediately adjacent device-containing layers. For each functional block within the device-containing layer, lateral heat flow is calculated to laterally adjacent functional blocks. If the lateral heat flow is less than a threshold value for a pair of adjacent functional blocks, placement of the functional blocks and/or interlayer interconnect structure array therebetween or modification of the interlayer interconnect structure array is performed. This routine is repeated for all adjacent pairs of functional blocks in each of the device-containing layers. Subsequently, block placement within each device-containing layer may be optimized under the constraint of a simultaneous optimization of interlayer connectivity across all device-containing layers. This method provides a design having sufficient lateral heat flow in each of the device-containing layers in a semiconductor chip.