VLSI refers to microchips containing hundreds of thousands of transistors used for computer processing. The VLSI design process begins with specifying the system and breaks it down into functional blocks and logic gates. It involves multiple phases of design representation from behavioral to layout. A top-down or bottom-up methodology is used, with a combination being common today. The goal is to take a system specification through functional design, logic design, circuit design, and physical design to produce a layout for chip fabrication.