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High power consumption not only leads to short battery life for hand-held devices but also causes on-chip thermal and reliability problems in general. As power consumption is proportional to the square of supply voltage, reducing supply voltage can significantly reduce power consumption. Multi-supply voltage (MSV) has previously been introduced to provide finer grain power and performance tradeoff. In this paper, we propose a methodology on top of a set of algorithms to exploit nontrivial voltage island boundaries for optimal power versus design-cost tradeoff under performance requirement. Our algorithms are efficient, robust, and error-bounded and can be flexibly tuned to optimize for various design objectives (e.g., minimal power within a given number of voltage islands, or minimal fragmentation in voltage islands within a given power bound) depending on the design requirement. Our experiment on real industry designs shows a tenfold improvement of our method over current logical-boundary-based industry approach.