VLSI design involves integrating hundreds of thousands of transistors onto a single microchip. It follows Moore's law, which predicts that the number of transistors per chip doubles every 18 months. The VLSI design flow includes behavioral, structural, and dataflow modeling using Verilog HDL. Test benches are used to apply inputs to designs and verify functionality. Common digital designs include microprocessors, UARTs for serial communication, and finite state machines like Mealy and Moore machines.