The author reviews the present understanding of the hole-mediated ferromagnetism in magnetically doped semiconductors and oxides as well as the origin of high temperature ferromagnetism in materials containing no valence band holes. It is argued that in these systems spinodal decomposition into regions with a large and a small concentration of magnetic component takes place. This self-organized assembling of magnetic nanocrystals can be controlled by co-doping and growth conditions. Functionalities of these multicomponent systems are described together with prospects for their applications in spintronics, nanoelectronics, photonics, plasmonics, and thermoelectrics.
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