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With each semiconductor process node, the impacts on performance of environmental and semiconductor process variations become a larger portion of the cycle time of the product. Simple guard-banding for these effects leads to increased product development times and uncompetitive products. In addition, traditional static timing methodologies are unable to cope with the large number of permutations of process, voltage, and temperature corners created by these independent sources of variation. In this paper we will discuss the sources of variation; by introducing the concepts of systematic inter-die variation, systematic intra-die variation and intra-die random variation. We will show that by treating these forms of variations differently, we can achieve design closure with less guard-banding than traditional methods.