Test Compression ratios are currently stalled at 100–200X. A new 2-dimensional physically-aware sequential Compressor-Decompressor design addresses the severe wiring congestion as well as the test coverage droop and pattern spike at the highest compression ratios. Results on some commonly used industrial designs shows a 2X reduction in routing overhead and congestion associated with Test Compression logic. The target test coverage is maintained while achieving up to 3.7X reduction in test data volume and test application time beyond the conventional methods.