The design methodology and realization of nanocomposite films aiming for mechanical (superhardness, toughness) and functional (optical, microelectronic) properties were discussed in this paper. Superhard TiCrCN and nc-TiN/a-SiNx films and super-tough nc-TiC/a-C(Al) films were prepared through co-sputtering method by optimal design of microstructure. The nanocrystalline silicon (nc-Si) passivated with a matrix of thermally grown silicon dioxide were prepared using implantation of Si into SiO₂ film, and showed improved photoluminescence and optical properties. Also discussed is the nano-composite design of thin film resistor with optimized temperature coefficient of resistivity. / Singapore-MIT Alliance (SMA)