In synchronous, clocked systems, which include 99% of all high speed digital products, a series of operations needs to happen within one clock cycle. These include all the gate-switching delays within one logic depth, the intra-chip propagation delays, the inter-chip propagation delays, the rise time or charging delays from the interconnects, the set up and hold times, and the skews between the clock and data lines. The timing budget allocates how much time is assigned for each source of delay.

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