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I bought the CFAG240128L-TMI-TZ module. I noticed it has a 32k RAM chip installed and looking from datasheet the T6963C controller can handle up to 64k of RAM.
The LCD module datasheet says the maximum amount of RAM where text and graphics can be allocated is 8k.

I'm not an expert so what am I missing? What causes the limit to be 8k?


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I'll take a stab at this.
What causes the limit to be 8k?
For a display of 240 * 128 = 30720 pixels, which can be stored in 3840 bytes.
So 3840 bytes for the TEXT AREA, and 3840 bytes for the GRAPHIC AREA, totals 7680 bytes.
That leaves 512 bytes for the CG RAM AREA, for a total of 8192 bytes (8KB).

I suppose for larger displays, more RAM would be needed for each of the AREAs. I also suppose you could make your TEXT and GRAPHIC areas larger than 8KB, but the extra would not be used on the screen for this display.

So the answer must be: the row/col size of the display limits the RAM needed (as opposed to allowed) to 8KB.