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This lecture covers the second-order effects in MOSFETs, focusing on the Body Effect and Channel-Length Modulation. It explains how the threshold voltage varies with the source-bulk potential difference and the channel length. Additionally, it delves into subthreshold conduction and the impact of gate-source voltage limitations on MOSFET performance. The layout of MOS devices and the considerations for minimizing resistance and capacitance in interconnects are also discussed.