Network-on-Chip (NoC) architectures represent a promising design paradigm to cope with increasing communication requirements in digital systems. Network-on-Chip (NoC) has emerged as a vital factor that determines the performance and power consumption of many-core systems. A novel switching mechanism, called virtual circuit switching, is implemented with circuit switching and packet switching. A path allocation algorithm is used to determine VCS connections and circuit-switched connections on a mesh-connected NoC, such that both communication latency and power are optimized.