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A distributed on-chip decoupling capacitor network is proposed in this paper. A system of distributed on-chip decoupling capacitors is shown to provide an efficient solution for providing the required on-chip decoupling capacitance under existing technology constraints. In a system of distributed on-chip decoupling capacitors, each capacitor is sized based on the parasitic impedance of the power distribution grid. Various tradeoffs in a system of distributed on-chip decoupling capacitors are also discussed. Related simulation results for typical values of on-chip parasitic resistance are also presented. The worst case error is 0.003% as compared to SPICE.