CPU Design refers to the process of creating the central processing unit, which is the brain of a computer. It involves defining the architecture, which includes the instruction set, data paths, and control logic. Designers aim to optimize performance, power consumption, and cost while ensuring compatibility with existing systems. Key components of CPU Design include the ALU (Arithmetic Logic Unit), which performs calculations, and the registers, which store temporary data. Designers also consider factors like clock speed and the number of cores to enhance multitasking capabilities. Overall, effective CPU Design is crucial for efficient computing.