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In this paper, we incorporate the surface impedance boundary condition into a MoM-based full-wave layered interconnect simulator (UA-FWLIS) to make it capable of handling conductor losses. By introducing an effective surface current and a surface impedance, the losses on the interconnects can be easily included in UA-FWLIS by adding an extra term to the reaction elements. In addition, the losses on the power/ground planes can also be handled by modifying the Green's function without affecting the angular integral in the reaction element calculation. Thus, the approach for analytically calculating the integrals in the reaction matrix, which uses readily computable ILHIs and residue theory, is still valid and the efficiency of UA-FWLIS can be retained. Comparing the S-parameter results from UA-FWLIS with those from agilent momentum validates the accuracy of the enhanced UA-FWLIS.