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The Illinois Scan Architecture (ILS) consists of several scan path segments and is useful in reducing test application time and test data volume for high density chips. In this paper, we propose a scheme of layout-aware as well as coverage-driven ILS design. The partitioning of the flip-flops into ILS segments is determined by their geometric locations, whereas the set of the flip-flops to be placed in parallel is determined by the minimum incompatibility relations among the corresponding bits of a test set, to enhance fault coverage in broadcast mode. As a result, the number of serial test patterns also reduces.