This paper proposes a new multiscan-based test input data compression technique by employing a fan-out compression scan architecture (FCSCAN) for test cost reduction. The basic idea of FCSCAN is to target the minority specified 1 or 0 bits (either 1 or 0) in scan slices for compression. Due to the low specified bit density in test cube set, FCSCAN can significantly reduce input test data volume and the number of required test channels so as to reduce test cost. The FCSCAN technique is easy to be implemented with small hardware overhead and does not need any special ATPG for test generation. In addition, based on the theoretical compression efficiency analysis, improved procedures are also proposed for the FCSCAN to achieve further compression. Experimental results on both benchmark circuits and one real industrial design indicate that drastic reduction in test cost can be indeed achieved.