Here we present a new method for the decomposition of a Finite State M
achine (FSM) into a network of interacting FSMs and a framework for th
e functional verification of the FSM network at different levels of ab
straction. The problem of decomposition is solved by output partitioni
ng and state space decomposition using a multiway graph partitioning t
echnique. The number of submachines is determined dynamically during t
he partitioning process. The verification algorithm can be used to ver
ify (a) the result of FSM decomposition on a behavioral level, (b) the
encoded FSM network, and (c) the FSM network after logic optimization
. Our verification technique is based on an efficient enumeration-simu
lation method which involves traversal of the state transition graph o
f the prototype machine and simulation of the decomposed machine netwo
rk. Both the decomposition and verification/simulation algorithms have
been implemented as part of an interactive FSM synthesis system and t
ested on a set of benchmark examples.