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According to the International Technology Roadmap for Semiconductors (ITRS), for more than four decades, the semiconductor industry has distinguished itself by the rapid pace of improvements in its products. However, the cost of the increased functionality of components, circuits, and systems, is the requirement of more verification and test of the electronic products. In current projects, verification engineers outnumber designers, with the ratio reaching two or three to one for the most complex designs. Additionally, the present globalization trends and needs are driving the universities worldwide, to find new avenues in the programs that they are offering, to be attractive to their prospective students. Addressing the above mentioned matters, an industry oriented graduate course “Testing of Digital Systems” was created and offered for the first time in the academic year 2009-2010 at Rose Hulman Institute of Technology, Terre Haute, Indiana. The paper presents the rationale, integration of the new course in the ECE curricula, description of the course and laboratory activities developed around an industrial grade Automatic Test Equipment, preliminary assessment plans and conclusions.