This paper describes special-purpose hardware for large-scale logic simulation, called SP2, which executes an event driven algorithm and can simulate up to sixteen million gates. SP2 was developed, in 1992, for system verification of large-scale computer designs as a successor to SP1, which was developed in 1987. SP2 provides enhanced performance, throughput, and delay accuracy over SP1. Since 1992, SP2 has been widely used for system-level simulation of mainframes, super computers, UNIX servers and microprocessors. It is used as a powerful simulator, in all stages of design verification, or in early stages, before regression testing, by using emulators.