Physics of materials involves fundamental understanding with a desire to manipulate nature by harnessing their properties or creating new materials to serve human needs. The 20th century was a period of remarkable fundamental and technological progress in advanced materials, which led to the invention of devices that now form the basis of much of our technological society, including the integrated circuit, the laser, magnetic resonance imaging, liquid-crystal displays and, more recently, high-efficiency solid-state lighting. By its nature, physics of materials is fundamentally a crosscutting research enterprise; it connects a multitude of subfields within physics, from semiconductors to biological physics, and it links physics with other disciplines, from engineering to computer science to biology. This conference focuses at the physics of emerging functional materials of 21st century, including organic semiconductors (both molecular and polymeric), materials at nanoscale, spintronic materials, magnetic and spintronic materials, thin films and devices, novel experimental techniques and biosystems and sensors.