To achieve certain properties, semiconductor adhesives and molding compounds are made by blending filler particles with polymer matrix. Moisture collects at filler particle/polymer matrix interfaces and within voids of the composite. At reflow temperatures, the moisture vaporizes. The rapidly expanding vapor creates high internal pressure on pre-existing voids and particle/matrix interfaces. The simultaneous action of thermal stresses and internal vapor pressure drives both pre-existing and newly nucleated voids to grow and coalesce causing material failure. Particularly susceptible are polymeric films and adhesives joining elastic substrates, e.g. Ag filled epoxy. Several competing failure mechanisms are studied including: near-tip void growth and coalescence with the crack; extensive void growth and formation of an extended damaged zone emanating from the crack; and rapid void growth at highly stressed sites at large distances ahead of the crack, leading to multiple damaged zones. This competition is driven by the interplay between stress elevation induced by constrained plastic flow and stress relaxation due to vapor pressure assisted void growth. A model problem of a ductile film bonded between two elastic substrates, with a centerline crack, is studied. The computational study employs a Gurson porous material model incorporating vapor pressure effects. The formation of multiple damaged zones is favored when the film contains small voids or dilute second-phase particle distribution. The presence of large voids or high vapor pressure favor the growth of a self-similar damage zone emanating from the crack. High vapor pressure accelerates film cracking that can cause device failures.