Utilization factor gives us information how much area must be occupied by the standard cell. As we increase the utilization factor , total area of the chip or block will be decreased. Let us discuss how the total area decreases and total area was

**Total Core Area = area occupied by macros+area occupied by standard cell+ empty area**

UF is defined as (area occupied by the standard cell)/(Total Core Are) and the UF is varied from .3 to .8 . In industry mostly they will go with utilization factor of 0.7 -0.8

Assume that standard cell occupy **80mm** area, all macros in the design occupy **30mm** area

- Utilization Factor be 70% means in the core area there should be 30% of free space for future use.

std. cell area =80mm

All macros area = 30mm

Free space area =35 mm

Total Core Area= 80+30+35 =**145mm**

And this explained properly in below figure.

- Utilization Factor be 80% means in the core area there should be 20% of free space for future use

std. cell area =80mm

All macros area = 30mm

Free space area =20 mm

Total Core Area= 80+30+20 =**130mm**

we can observe that area of the core decreases if we increase the **utilization factor** of the block or design

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