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Reed-Solomon (RS) codes are used as error-correcting codes in numerous digital communication and storage systems. Algebraic soft-decision decoding (ASD) of RS codes can achieve substantial coding gain with polynomial complexity. Among practical ASD algorithms, the iterative bit-level generalized minimum distance (BGMD) decoding can achieve similar or higher coding gain with lower complexity. The interpolation is a major step of ASD. The maximum achievable speed of this step is limited by the inherent serial nature of the interpolation algorithm. In this paper, a novel interpolation scheme that is capable of combining multiple interpolation iterations, as well as sharing interpolation results from previous decoding iterations, is developed for the iterative BGMD decoding. In addition, efficient VLSI architectures are proposed to implement the developed scheme. Based on the proposed architectures, an interpolator for a (255, 239) RS code is implemented on field programmable gate array (FPGA) devices. On a Xilinx Virtex-II device, our interpolator can achieve a throughput of 440 Mbps, which is 64% higher than the fastest previous design, with 51% less FPGA resource.