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This lecture covers the importance of power and energy in VLSI design, emphasizing their significance over area and delay due to technology scaling. It explains the relationship between power and energy, the motivation for energy reduction in mobile computing, and the impact of power reduction in high-performance computing. The lecture also delves into power and energy basics, short-circuit currents, leakage power, voltage scaling, and compensating for speed loss through architectural optimizations. Various examples illustrate the concepts, such as the impact of threshold voltage selection and voltage scaling on speed and energy consumption in different datapath designs.