We present a recursive method for generating layout for V u 1 chips based on integrating layout directives in the netlist description. The method allows seamless integration of handdrawn and synthesized layout, so that hand layout need only be used where the increase in density is justified. Layout is generated automatically with predictable results; small changes in the source result in small changes of the overall layout. The system is versatile enough to build dense vu1 microprocessor chips automatically.