On page 13-14 of the TMS320C3x Users Guide, there is a note that recommends using 0.1 mF decoupling capacitors on the Vdd pins of the TMS320C31. Here we will provide tips on the number and types of capacitors you should use. 1) On a multilayer PCB with separate Vcc /Vdd planes, half a dozen 0.1 mF will be ample. This assumes that other devices (e.g., memories) are decoupled adequately. Ceramics are the right choice. The real rule is to find capacitors with no inductive component. Electrolytics, for example, have a significant amount of inductance due to their manufacturing method. That is why in many switching regulators you find a large electrolytic in parallel with a small ceramic capacitor.