This lecture covers the design and implementation of LED effects using custom IP components with AXI interface and custom hardware support. Topics include LED brightness modulation using Pulse Width Modulation, XILINX Vivado design flow steps, creating custom IP components, connecting top-level ports to FPGA pins, and naming conventions for signals. The lecture also discusses the process of creating and packaging new IP components, adding interfaces, and connecting top-level ports to FPGA pins. Practical aspects such as design hierarchy in Vivado, AXI-Lite with dimmer schematic, and making external connections are explored.