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In many fields of thermomechanical applications, such as advanced gas turbine, thermal protection of space planes, oil and coal electric generation, advanced brake devices, etc. high performance materials are needed. Lacking of toughness and reliability, monolithic ceramics had reached their limits and multi-phase - terials are expected as the most promising candidates. Apart from the impro- ment on the thermomechanical performance, more than one function, such as magnetic, electrical and optical functions, can be incorporated simultaneously into the multi-phase material. However, several key problems remained to be solved in the near future. These problems include microstructure complexity, process challenge, machining ability and the most important cost issue. Fourteen scientists from 9 leading research - stitutes across Taiwan Strait are invited to give their view and experimental e- dence on solving the above problems. These reports highlight the principles of - signing delicate microstructure and novel processing routes. The potential of improving machining ability is also demonstrated. However, the most critical cost problem remained to be solved. In light of the economic surge in China in recent years, the market demands more technology breakthrough. The market can accept value-added products. It further indicates the importance of developing of multi-phase materials with multi-functions. Along with the market growth, the cost problem will be solved soon as the mass production technology becoming available.