The main objectives of this dissertation is to investigate the prospects of embedded thermoelectric devices integrated in a chip package and to develop a design methodology aimed at taking advantage of the on-chip on-demand cooling capabilities of the thermoelectric devices. First a simulation framework is established and validated against experimental results, which helps to study the cooling capabilities of embedded thermoelectric coolers (TEC) in both a transient and steady state. The potential for up to 15°C of total cooling has been shown. The thermal simulation framework allows for rapid assessment of TEC and system level thermal performance. Next, the thesis develops a co-simulation environment that is capable of simulating the thermal and electrical domain and couples them to design intelligent TEC controllers. These controllers are implemented on chip and can leverage the transient cooling capability of the device. The controllers are simulated within the co-simulation environment and their potential to control high power chip events are thoroughly investigated. The system level overheads are considered and discussions on implementation techniques are presented. The co-simulation framework is also extended to allow for simulation of real predictive technology microprocessor cores and their workloads. Finally the thesis implements a fully on-chip autonomous energy system that takes advantage of the TEC in its reverse energy harvesting mode and uses the same device to harvest energy and use the energy to power the on-chip cooling circuit. This increases the overall energy efficiency of the cooler and verifies the TEC control methods.