An industrial controller with a modular backplane includes multiple modules, where each module includes a base and a chassis. Electrical connectors located on each side of the base engage the base of an adjacent module such that the bases are electrically connected. The backplane is defined by and extends through each of the bases connected to each other. A chassis is inserted into each base. Each chassis includes an embedded switch and a local circuit. The embedded switch is in communication with the base, and the local circuit performs the operation of the corresponding module. The embedded switch receives data transmitted along the backplane between bases. The embedded switch reads the data intended for the module and passes the data to the local circuit for further processing. Similarly, the embedded switch receives data from the local circuit and inserts the data on the backplane for transmission to the appropriate module.