A method for fabricating an integrated electronic compass and circuit system. The fabrication method begins with providing a semiconductor substrate comprising a surface region. One or more CMOS integrated circuits are then formed on one or more portions of the semiconductor substrate. Once the CMOS circuits are formed, a thickness of dielectric material is formed overlying the one or more CMOS integrated circuits. A substrate is then joined overlying the thickness of the dielectric material. Once joined, the substrate is thinned to a predetermined thickness. Following the thinning process, an electric compass device is formed within one or more regions of the predetermined thickness of the substrate. Other mechanical devices or MEMS devices can also be formed within one or more regions of the thinned substrate.