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The goal of thermal management is to meet maximum operating temperature constraints, while at the same time tracking time-varying performance requirements. Current approaches avoid thermal violations by forcing abrupt operating points changes (e.g. processor shutdown), which cause sharp performance degradation. In this paper we aim at achieving a smooth thermal control action, that minimizes the variance of performance tracking error. We formulate this problem as a discrete-time optimal control problem, which can be solved using the theory and computational tools developed in the field of model-predictive control. Our optimization process considers the thermal profile of the system, its evolution over time, and time-varying workload requirements. Experimental results show that the proposed approach offers significant thermal balancing improvements over previous methods.