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This paper presents a new VLSI design and implementation of a high-speed three-stage pipelining Reed-Solomon (204,188) decoder based on the modified Euclidean algorithm (MEA). A new multiplier and inversion for GF(2m) are implemented on the composite field GF(22n) (m = 2n), which offers no more than 75% hardware requirements of the standard Mastrovito multiplier and ROM respectively. By setting the new initial conditions of MEA, a novel parallel MEA architecture is proposed to reuse the registers and multipliers, which can save about 30% hardware overheads compared to the conventional architecture with the same decoding rate. Using 0.25 μm CMOS technology, the complexity of the proposed RS decoder is about 30,000 gates with the decoding latency of 239 clock cycles and a throughput of 1.6 Gbit/s.