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Physical design in VLSI is the step where a digital circuit is made ready to fit on a real chip. After designing the logic, engineers arrange all components on silicon and connect them properly. This process includes floorplanning, placing cells, routing wires, and checking timing and power.

The aim is to make the chip small, fast, and power-efficient while ensuring it can be manufactured correctly. In short, physical design changes the circuit diagram into an actual chip layout.

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