Implantable high-density multichannel neural recording microsystems provide simultaneous recording of brain activities. Wireless transmission of the entire recorded data causes high bandwidth usage, which is not tolerable for implantable applications. As a result, a hardware-friendly compression module is required to reduce the amount of data before it is transmitted. This paper presents a novel compression approach that utilizes a spike extractor and a vector quantization (VQ)-based spike compressor. In this approach, extracted spikes are vector quantized using an unsupervised learning process providing a high spike compression ratio (CR) of 10-80. A combination of extracting and compressing neural spikes results in a significant data reduction as well as preserving the spike waveshapes. The compression performance of the proposed approach was evaluated under variant conditions. We also developed new architectures such that the hardware blocks of our approach can be implemented more efficiently. The compression module was implemented in a 180-nm standard CMOS process achieving a SNDR of 14.49[Formula: see text]dB and a classification accuracy (CA) of 99.62% at a CR of 20, while consuming 4[Formula: see text][Formula: see text]W power and 0.16[Formula: see text]mm2 chip area per channel.