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Evolvable hardware (EHW) deals with the application of evolutionary algorithms in hardware design. In intrinsic EHW, the evolutionary algorithm or the fitness evaluation is implemented in hardware. In this case, there is a need for hardware-friendly algorithms. In this work, we introduce cellular learning automata based evolutionary computing (CLA-EC) as a new algorithm for intrinsic hardware evolution. The parallel structure of CLA-EC makes it suitable for EHW. Therefore, in this work we consider the application of this algorithm to EHW.