The VLSI technology mainly used to optimize the any type of digital architecture in real world applications. This architecture is to develop the performance level about the applications. The traffic light controller IC used to road ways and especially in high traffic areas. This technology is one of the important applications in embedded processing. But this technique has some problems. So reduce the problem using the VLSI technology. This technology is to optimize the traffic light controller IC. Present Traffic Light Controllers (TLC) is based on microcontroller and microprocessor. These TLC have limitations because it uses the pre-defined hardware, which is functioning according to the program that does not have the flexibility of modification on real time basis. Due to the fixed time intervals of green, orange and red signals the waiting time is more and car uses more fuel. To make traffic light controlling more efficient, the system exploit the emergence of new technique called as “Intelligent traffic light controller”. The various performance evaluation criteria are average waiting time, average distance traveled by vehicles, switching frequency of green light at a junction, efficient emergency mode operation and satisfactory operation of SMS using GSM Mobile. The performance of the Intelligent Traffic Light Controller is compared with the Fixed Mode Traffic Light Controller. It is observed that the proposed Intelligent Traffic Light Controller is more efficient than the conventional controller in respect of less waiting time, more distance traveled by average vehicles and efficient operation during emergency mode and GSM interface.