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A three-chip DLP projector uses a prism to split light from the lamp, and each primary color of light is then routed to its own DLP chip, then recombined and routed out through the lens. Three chip systems are found in higher-end home theater projectors, large venue projectors and DLP Cinema projection systems found in digital movie theaters.

According to DLP.com, the three-chip projectors used in movie theaters can produce 35 trillion colors. The human eye is suggested to be able to detect around 16 million colors[citation needed], which is theoretically possible with the single chip solution. However, this high color precision does not mean that three-chip DLP projectors are capable of displaying the entire gamut of colors we can distinguish (this is fundamentally impossible with any system composing colors by adding three constant base colors). In contrast, it is the one-chip DLP projectors that have the advantage of allowing any number of primary colors in a sufficiently fast color filter wheel, and so the possibility of improved color gamuts is available.