Abstract: This paper proposes an innovative 0-1 partitioning algorithm (named 0-1 algorithm) over IP cores which can efficiently partition an expected system into hardware or software parts. The correctness of the 0-1 algorithm is verified. It is illustrated that the result of optimization using the algorithm is better than using genetic algorithm, with similar convergence speed. In addition, this algorithm has the advantage that its convergence is quicker than the Integer Linear Programming (ILP) approach.