Advances in nano-electronics VLSI manufacturing technology and the rapid downscaling of the size of logic circuits have made them more prone to errors. This has led to the need for fast circuit reliability evaluation of large logic circuits. In this paper a new method for reliability analysis of VLSI logic circuits based on a modified form of Mason’s rule is proposed. Utilizing matrix sparsity significantly increases the speed and reduces the required memory of the proposed approach. In addition, an approach is introduced to mitigate the effect of reconvergent paths. Simulation results indicate that the proposed method is scalable and runs 4 faster than previously proposed schemes.

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