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A novel dither incorporated deterministic dynamic element matching (DIDDEM) approach is proposed. With this approach, the combined output of a DDEM DAC and a dither DAC serves as the stimulus to an ADC under test. Theoretical analysis shows that the test performance with the DIDDEM DAC is equivalent to that of a DAC with an ENOB (effective number of bits) equal to the summation of the ENOB of the DDEM DAC and the dither DAC plus log2p, where p is the DDEM iteration number. The test performance using DiDDEM is also validated by simulation results.