According to the National Research Council, the use of embedded systems throughout society could well overtake previous milestones in the information revolution. Mechatronics is the synergistic combination of electronic, mechanical engineering, controls, software and systems engineering in the design of processes and products. Mechatronic systems put "intelligence" into physical systems. Embedded sensors/actuators/processors are integral parts of mechatronic systems. The implementation of mechatronic systems is consistently on the rise. However, manufacturers are working hard to reduce the implementation cost of these systems while trying avoid compromising product quality. One way of addressing these conflicting objectives is through new automatic control methods, virtual sensing/estimation, and new innovative hardware topologies.