In this paper, we report the implementation of alternating-direction-implicit (ADI) finite-difference time-domain (FDTD) method for modeling and simulation of VLSI interconnects in order to resolve the limitation of Courant-Friedrich-Levy (CFL) stability condition. It is revealed that the ADI-FDTD simulation approach is promising for understanding the electromagnetic phenomena of the VLSI interconnects. The amount of signal distortion as well as cross-talks between the parallel and cross-over interconnects has been calculated. For instance, signal distortion of 0.3-0.6 V with clock distortion of 0.2-0.4 V are measured for two parallel lines with I pm spacing. (c) 2004 Published by Elsevier B.V.