A new algorithm for parallel fault simulation of VLSI on multicore workstations with common memory is proposed. To speeding up the algorithm two-level parallelization is used. First, main schema of the algorithm is based on the concurrent many-threaded simulation of the groups of faults for each input vector. Second, each group of faults is simulated in bit-parallel way. Also the algorithm is used dynamic fault partitioning for forming those groups. The results of computational experiments on ISCAS-89 benchmarks circuits are reported, which are obtained on the 12-core workstation.