The paper deals with a problem encountered in the physical implementation of circuits on the PCB and VLSI chip level as well. Due to its complexity a decomposition methods are used to decrease the complexity of the problem. We present min-cut algorithms that are based upon the principle of partitioning. The circuit is repeatedly divided into densely connected subcircuits such that the number of signal nets among them is minimized. In addition we present some experimental results acquired by the lim-cut algorithm developed at our department. The new techniques used allows the minimalization both the total wire length and the density of wires to be done.