A tunneling magnetoresistive(TMR)-based logic-in- memory circuit, where storage functions are distributed over a logic-circuit plane, is proposed for a low-power VLSI system. Since the TMR device is regarded as a variable resistor with a non-volatile storage capability, any logic functions with external inputs and stored inputs can be performed by using the TMR-based resistor/transistor network. The combination of dynamic current-mode circuitry and a TMR-based logic network makes it possible to perform any switching operations without steady current, which results in power saving. A design example of an SAD unit for MPEG encoding is discussed, and its advantages are demonstrated.