A flexible multi-electrode array (MEA) with an embedded silicon chip for electrical stimulation of neurons or for recording action potentials has been manufactured and characterized. Possible improvements for medical applications using this novel approach are presented. By connecting and addressing several of these MEAs via a bus system, the number and the density of electrodes can be increased significantly. This is interesting for medical applications such as retinal implants and cochlear implants, and also for deep brain stimulators. Design and fabrication techniques for the multi-electrode array are presented. Finally, first results of mechanical stress tests are shown.