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This paper introduces an accurate analysis of on-chip inductance effects for distributed RLC interconnects that takes the effect of both the series resistance and the output parasitic capacitance of the driver into account. Using rigorous first principle calculations, accurate expressions for the transfer function of these lines and their time-domain response have been presented for the first time. Using these, a new and computationally efficient performance optimization techniques for distributed RLC interconnects has been introduced. The new optimization technique has been employed to analyze the impact of line inductance on the circuit behavior and to illustrate the implications of technology scaling on wire inductance. It is shown that reduction in driver output resistance and input capacitance with scaling can make deep submicron designs increasingly susceptible to inductance effects if global interconnects are not scaled. For scaled global interconnects with increasing line resistance per unit length, as prescribed by the International Technology Roadmap for Semiconductors, the effect of inductance on interconnect performance actually diminishes.