Unknown (X) states are increasingly often identified as having potential for rendering semiconductor tests useless. One of the key requirements for a reliable test response compactor is, therefore, to preserve observability of any scan cell for a wide range of X-profiles while maintaining very high-compaction ratios, providing ability to detect a variety of failures found in real silicon, and assuring design simplicity. We have proposed a fully X-tolerant test response compaction scheme which is based on a flexible scan chain selection mechanism. This new approach delivers extremely high compression of test results by observing that X states are typically not randomly distributed in test responses. Identical or similar patterns of correlated X states let the proposed scheme reduce the size of a scan chain selector and the amount of test data used to control it. It handles, moreover, a wide range of unknown state profiles such that all X states, including those being clustered and of high density, are suppressed in a per-cycle mode without compromising the test quality.