The algorithms and the implementation of a novel macro/custom cell chip-planning, placement, and global routing package are presented. The simulated-annealing-based placement algorithm proceeds in two stages. In the first stage, the area around the individual cells is determined using novel interconnect area estimator. The second stage consists of: (1) a channel definition step, using a novel channel definition algorithm, (2) a global routing step, using a new global router algorithm, and (3) a placement refinement step. This strategy has produced placements which require very little placement modification during detailed routing. Total interconnect-length savings of 8 to 49% were achieved in experiments on nine industrial circuits. Furthermore, circuit-area reductions ranged from 4 to 56% versus a variety of other placement methods.< >