With the increase in the complexity of the semiconductor device processes and increase in the challenge to satisfy high market demands, enhancement in yield has become a crucial factor. Discovering and reacting to yield problems emerging at the end of the production line may cause unbearable yield loss leading to larger times to market. Thus, time and cost involved in fault isolation may be significantly shortened by effectively utilizing the fault diagnosis technology and supporting yield improvements. Hence for yield analysis, a highly integrated data network with software analysis tools have been established to reduce the fault analysis time. Synopsys Avalon, a product used for fault localization is described in this paper which aids in achieving better integrated circuit yields. This paper also illustrates various fault localization techniques for faster problem identification and discusses a few analytical tools like photon emission microscope and transmission emission microscope for faster determination of device failures.