We present a new methodology for a balanced yieldoptimization and a new DFM framework which implements it. Our approach allows designers to dynamically balance multiple factors contributing to yield loss and select optimal combination of DFM enhancements based on the current information about the IC layout, the manufacturing process,and known causes of failures. We bring together the information gained from layout analysis, layoutaware circuit analysis, resolution enhancement and optical proximity correction tools, parasitics extraction, timing estimates, and other tools, to suggest the DFM solution which is optimized within the existing constraints on design time and available data. The framework allows us to integrate all available sources of yield information, characterize and compare proposed DFM solutions, quickly adjust them when new data or new analysis tools become available, finetune DFM optimization for a particular design and process and provide the IC designer with a customized solution which characterizes the manufacturability of the design, identifies and classifies areas with the most opportunities for improvement, and suggests DFM improvements. The proposed methodology replaces the adhoc approach to DFM which targets one yield loss cause at a time at the expense of other factors with a comprehensive analysis of competing DFM techniques and tradeoffs between them.