TCAM (ternary content addressable memory) is a popular device for fast routing lookup. The advantages of TCAM are high lookup speed and simple operation. However, TCAM still has three explicit disadvantages: high cost, high power consumption and complex update. For load balancing and policy routing, routers have to hold considerable routes with multi next hops. This paper proposes a fast IP lookup scheme that is based on TCAM and supports routing lookup for multi next hops. With two index tables, the scheme can store and retrieve the routes with multi next hops. To improve the TCAM update, a fast update algorithm—N-subspace algorithm that can approximately reach the O(1) complexity for current Internet routing tables is also proposed. To decrease cost and power consumption, an efficient routing compaction method is also applied, which is based on the Trie structure and can reduce 20% routes for Internet routing tables. Also, the scheme can scale to IPv6 easily.