Microprocessor Design/Instruction Decoder
The Instruction Decoder reads the next instruction in from memory, and sends the component pieces of that instruction to the necessary destinations.
For each machine-language instruction, the control unit produces the sequence of pulses on each control signal line required to implement that instruction (and to fetch the next instruction).
If you are lucky, when you design a processor you will find that many of those control signals can be "directly decoded" from the instruction register. For example, sometimes a few output bits from the instruction register IR can be directly wired to the "which function" inputs of the ALU. Even if those bits mean something completely unrelated in non-ALU instructions, it's OK if the ALU performs, say, a bogus SUBTRACT, while the rest of the processor is executing a STORE instruction.
The remaining control signals that cannot be decoded from the instruction register -- if you are unlucky, all the control signals -- are generated by the control unit, which is implemented as a [Moore machine] or a [Mealy machine]. There are many different ways to implement the control unit.
If you design a processor with a Princeton architecture -- your processor normally pulls instructions from the same single-ported memory used to read and write data -- then you are forced to have at least LOAD and STORE take more than one clock cycle to execute. (One cycle for the data, and another cycle to read the next instruction). (Many processors are designed with "single-cycle execution", either very simple Harvard architecture processors, or complicated high-performance processors with a separate instruction cache).
RISC Instruction Decoder
The RISC instruction decoder is typically a very simple device. Because RISC instruction words are a fixed length, the positions of the fields are fixed, and processor reads in the entire instruction into the instruction register. We can decode an instruction, therefore, by simply separating the machine word in the instruction register into small parts using wire slices.
CISC Instruction Decoder
Decoding a CISC instruction word is much more difficult than the RISC case, and the increased complexity of the decoder is a common reason that people cite when they choose to use RISC over CISC in their designs.
A CISC decoder is typically set up as a state machine. The machine reads the opcode field to determine what type of instruction it is, and where the other data values are. The instruction word is read in piece by piece, and decisions are made at each stage as to how the remainder of the instruction word will be read.
Perhaps the conceptually simplest and most general-purpose approach is to implement the control unit with a very wide control store ROM holding the microprogram. A pipeline register latches all the output bits of the control store ROM every clock cycle.
Each clock cycle the pipeline register latches a new set of bits.
The output of the pipeline register has 2 sections: Control bits that go out to all the other bits and pieces of the processor. The "microPC" that feeds back to some of the address inputs of the control store ROM. Some people hardwire the carry flag to one of the address inputs of the control store ROM.
Every time a new opcode is fetched from main memory, typically the high bits of the microPC are loaded with the opcode, and the low bits of the microPC reset to zero. (To make things easier to debug, some designers load the opcode into both a separate instruction register IR as well as the microPC register, at least in the initial prototypes. Once the design is debugged, it might turn out that some or all the bits from the IR or the microPC register or both are never used, and so can be left out of the final design). During execution of the instruction, each clock cycle the pipeline register loads a new microPC address from the control store and a new set of control bits from the control store. Typically the person who writes the microprogram -- burned into the control store ROM -- designs the next-address output bits of that ROM to sequentially increment for the first few cycles of the implementation of that opcode. Then the microprogram for every "normal" opcode eventually jumps to one common section of the control store ROM that handles fetch-next-instruction.