VLSI is an acronym for "Very Large Scale Integration" or "Very Large Scale Integrated" when attached to the word "circuit". This term is used to describe the high levels of integrated components (usually transistors) found in today's modern silicon based integrated circuits.

VLSI is putting large high-level circuits on a single chip of silicon, as opposed to using individual components, logic gates, and general-purpose chips. The downside to VLSI is that it destroyed the old school low-level hardware hacking--no more hacking opcodes like you could on ancient PDPs. It had to happen, though.

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