Advances in semiconductor design and manufacturing technology enable the de
sign of complete systems on one IC. To develop these system ICs in a timely
manner, traditional IC design in which everything is designed from scratch
, is replaced by a design style based on embedding large reusable modules,
the so-called cores. Effectively, the design of a core-based IC is partitio
ned over the core provider(s) and the system-chip integrator. The developme
nt of tests should follow the same partitioning. In this article we describ
e the differences between traditional and core-based test development, and
present an overview of current industrial approaches. We list the future ch
allenges regarding standardization, tool development, and academic and indu
strial research.