An improved Augmented Line Segment Based (ALSB) algorithm for the construction of Rectilinear Steiner Minimum Tree using augmented line segments is proposed. The proposed algorithm works by incrementally increasing the length of line segments drawn from all the points in four directions. The edges are incrementally added to the tree when two line segments intersect. The reduction in cost is obtained by postponing the addition of the edge into the tree when both the edges (upper and lower

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... d layouts) are of same length or there is no overlap. The improvement is focused on reduction of the cost of the tree and the number of times the line segments are augmented. Instead of increasing the length of line segments by 1, the line segments length are doubled each time until they cross the intersection point between them. The proposed algorithm reduces the wire length and produces good reduction in the number of times the line segments are incremented. Rectilinear Steiner Minimum Tree has the main application in the global routing phase of VLSI design. The proposed improved ALSB algorithm efficiently constructs RSMT for the set of circuits in IBM benchmark.