A two-dimensional systolic array for fast Fourier transform, which has a regular and recursive VLSI architecture is presented. The array is constructed with identical processing elements (PE) in mesh type, and due to its modularity, it can be expanded to an arbitrary size. A processing element consists of two data routing units, a butterfly arithmetic unit and a simple control unit. The array computes FFT through three procedures` I/O pipelining, data shuffling and butterfly arithmetic. By utilizing parallelism, pipelining and local communication geometry during data movement, the two-dimensional systolic array eliminates global and irregular commutation problems, which have been a limiting factor in VLSI implementation of FFT processor. The systolic array executes a half butterfly arithmetic based on a distributed arithmetic that can carry out multiplication with only adders. Also, the systolic array provides 100% PE activity, i.e., none of the PEs are idle at any time. A chip for half butterfly arithmetic, which consists of two BLC adders and registers, has been fabricated using a 3-um single metal P-well CMOS technology. With the half butterfly arithmetic execution time of about 500 ns which has been obtained b critical path delay simulation, totla FFT execution time for 1024 points is estimated about 16.6 us at clock frequency of 20MHz. A one-PE chip expnsible to anly size of array is being fabricated using a 2-um, double metal, P-well CMOS process. The chip was layouted using standard cell library and macrocell of BLC adder with the aid of auto-routing software. It consists of around 6000 transistors and 68 I/O pads on 3.4x2.8mm\ulcornerarea. A built-i self-testing circuit, BILBO (Built-In Logic Block Observation), was employed at the expense of 3% hardware overhead.