The combination of textile fabrics with microelectronics will lead to completely new applications, thus achieving elements of ambient intelligence. The integration of sensor or actuator networks, using fabrics with conductive fibres as a textile motherboard enable the fabrication of large active areas. In this paper we describe an integration technology for the fabrication of a “smart textile” based on a wired peer-to-peer network of microcontrollers with integrated sensors or actuators. A self-organizing and fault-tolerant architecture is accomplished which detects the physical shape of the network. Routing paths are formed for data transmission, automatically circumventing defective or missing areas. The network architecture allows the smart textiles to be produced by reel-to-reel processes, cut into arbitrary shapes subsequently and implemented in systems at low installation costs. The possible applications are manifold, ranging from alarm systems to intelligent guidance systems, passenger recognition in car seats, air conditioning control in interior lining and smart wallpaper with software-defined light switches.