A method for performing a hierarchical statistical timing analysis of an integrated circuit (IC) chip design by abstracting one or more macros of the design. The method includes performing a statistical static timing analysis of at least one macro; performing a statistical abstraction of the macro to obtain a statistical abstract model of the macro timing characteristics; applying the statistical abstract model as the timing model for each occurrence of the macro leading to a simplified IC chip design; and performing a hierarchical statistical timing analysis of the simplified chip design. The method achieves a context aware statistical abstraction, where a generated statistical abstract model is instantiated for each macro of the chip during statistical static timing analysis at the chip level, providing a compressed and pruned statistical timing abstraction and reducing the model-size during the statistical abstraction.