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The advent of Very Large Scale Integration (VLSI) technology has rendered the gate level model impractical for many simulation activities critical to the design automation process. As an alternative, an approach to the modeling of VLSI devices at the chip level is described, including the specification of modeling language constructs important to the modeling process. A model structure is presented in which models of LSI devices are constructed as single entities. The modeling structure is two layered. The functional layer in this structure is used to model the input/output response of the LSI chip. A second layer, the fault mapping layer, is added, if fault simulations are required, in order to map the effects of hardware faults onto the functional layer. Modeling examples for each layer are presented. Fault modeling at the chip level is described. Approaches to realistic functional fault selection and defining fault coverage for functional faults are given. Application of the modeling techniques to single chip and bit slice microprocessors is discussed.