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Recently, 65 nm technology-based microprocessors have been introduced into high-end products such as games processors and high- performance servers . As technology development in the modern-day relies more and more on non-traditional performance- leverage elements, there is an enhanced need to tighten the coupling between development, modeling, and design. We discuss the key challenges in the inter-related tasks of CMOS-technology development, early product engineering, and transition to full-volume manufacturing. In order to meet timely introduction to market, several key objectives must be pursued in a parallel fashion and must adhere to stringent timelines. The essence of this is the simultaneous development of (1) 65 nm process-technology (including continual process development geared towards minimization of variability) (2) highly accurate compact models and (3) product- design.