The complexity of hardware components has grown rapidly over the past two decades, with the advances in technologies for manufacturing integrated circuits. Also, the widely spread application of hardware components has required them to be competitive to the market. These factors have led to a requirement for new methods and techniques to enhance controllability, quality and productivity of hardware components. Reusability has been recognized as a basic principle for enhancing productivity and quality of engineering products. Additionally, formal development of hardware has emerged as a method to ensure quality and help handle the complexity of description of hardware components. Based on these premises, this thesis introduces a technique for formal reuse of hardware design. The main idea of this project is to create a "context" in which an existing hardware component must be embedded in order to implement a new desired component. A solution for effective reuse of hardware components depends on mechanisms to compare the behaviour of these elements, where their similarities and dissimilarities are recognized. So, ways to relate components from a reuse point of view are introduced and, based on those, the necessary "context" is formally constructed. A process algebra is used for the behavioural representation of hardware, and as a foundation for formally reasoning about the reuse of hardware design. Algebraic manipulation of processes allows for managing the representation of complex components. In order to permit reuse of complex components, the "context" is constructed via a "decomposition operator" defined for the particular process algebra. To obtain minimal "contexts", mechanisms for minimization of concurrent processes, in terms of the number of states and communications, are finally presented. The contribution of this thesis is a basis for algebraic manipulation of reusable components, and a mechanism to create minimal "contexts" for formal reuse of hardware components.