All of the LVDS advantages discussed so far also benefit system cost. There are even more system cost savings from using LVDS. The first is LVDS’s ability to tolerate minor impedance mismatches in transmission paths. As long as the differential signal passes through balanced discontinuities in closely coupled transmission paths, the signal can maintain integrity. The effect of nonimpedance-controlled connectors, PCB vias, and chip packaging is not as detrimental to differential signals as it is to single-ended signals. In addition, it is possible to use fewer circuit board layers because of the relative immunity to crosstalk that is inherent in differential signals.

LVDS requires only a simple termination resistor, which can be integrated onto the chip. This costs much less than using multiple resistor and capacitor components for each transmission line. In addition, LVDS requires no termination or V_ddq voltage supply, a big cost savings over technologies such as GTL, LVTTL, and stub series terminated logic (SSTL).

Because LVDS is capable of handling the high-speed data that results from serializing many parallel bits into a single data stream, LVDS chips commonly integrate serializers and deserializers. This saves about 50 percent of the cabling, connector, and PCB costs when compared to a parallel interconnect. The FPD–link chipset demonstrates this system cost savings. The chipset takes the 18- or 24-bit-wide red/green/blue (RGB) bus, and the VSYNC, HSYNC, and data enable control lines and multiplexes them down to only four or five pairs. This low-cost four- or five-pair link passes data through the hinge to the panel where it is demultiplexed. Typical interconnects range from about 8 cm to 40 cm in length and use low-cost flex circuit or twisted-pair cabling.

The final LVDS system benefit is its integration capability. Because it is possible to implement high-speed LVDS in a standard CMOS process, integrating complex digital functions with LVDS’s analog circuits is very beneficial. Integrating serializers and deserializers is only the beginning to mixed-signal LVDS chips.