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A microprocessor is a controlling unit of a micro-computer wrapped inside a small chip. It performs Arithmetic Logical Unit (ALU) operations and communicates with the other devices connected with it. It is a single Integrated Circuit in which several functions are combined. Microcontrollers and Microprocessors are different ways of organizing and optimizing a computing system based on a CPU. While a microcontroller puts the CPU and all peripherals onto the same chip, a microprocessor houses a more powerful CPU on a single chip that connects to external peripherals.