ALU, acronym of Arithmetic Logic Unit is the part of a computer which performs all the arithmetic calculations like addition and multiplication, and logical operations like AND, OR, XOR, etc. It is basically a digital circuit that is the fundamental building block of a CPU (Central Processing Unit).
Processors incorporate ALU along with other components such as memory and control unit. Modern computers have very complex ALUs to perform complex calculations and logical operations within a computer. In some computers ALU is divided into two different components – AU (Arithmetic) and LU (Logic Unit).
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