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Semiconductor refers to chip that is made up of several thousands of transistors fused together; each transistor represents the binary state of a bit (on/off, zero/one). Chips are classified according to the number of transistors or circuits etched on them. A chip with a small number of circuits is called an integrated circuit (IC). As the number of circuits on the chip increases, it is referred to as a large-scale integration (LSI), very large-scale integration (VLSI), or ultra large-scale integration (ULSI) chip.

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