The frequency-sensitive competitive learning (FSCL) algorithm and its associated VLSI neuroprocessor have been developed for adaptive vector quantization (AVQ). Simulation results show that the FSCL algorithm is capable of producing a good-quality codebook for AVQ at high compression ratios of more than 20 in real time. This VLSI neural-network-based vector quantization (NNVQ) design includes a fully parallel vector quantizer and a pipelined codebook generator to provide an effective data compression scheme. It provides a computing capability as high as 3.33 billion connections per second. Its performance can achieve a speedup of 750 compared with SUN-3/60 and a compression ratio of 33 at a signal-to-noise ratio of 23.81 dB.