The present paper discusses the development of Fe 48 Co 52 /TiN, Fe 32 Co 44 Hf 12 N 12 /TiN, Fe-Co/Al-N multilayer, and Fe 2 B single layer films produced by magnetron sputtering processes. These films combine appropriate magnetic and wear resistant multifunctional properties for the employment as sensor components for monitoring the actual state of stress and/or temperature of cutting tools used in the metal processing industry. At this point, the ferromagnetic layers enable the sensor function, whereas the TiN or Al-N layers support mechanical features. Being exposed to stress and/or temperature, the change of polarization or permeability can be utilized as a response for reading-out the sensor component.