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This paper deals with area minimization of power network for very large-scale integration designs. A new algorithm based on efficient nonlinear programming techniques is presented to solve this problem. During the optimization, a penalty method, conjugate gradient method, circuit sensitivity analysis, and merging adjoint networks are applied, which enables the algorithm to optimize large circuits. The experiment results prove that this algorithm is robust and can achieve the objective of minimizing the area of power network in a short runtime.