An on-chip mode-setting circuit and method are provided for a chip having an output driver with an output terminal connected to a pin of the chip. The pin may be defined between two states from exterior of the chip. The on-chip mode-setting circuit includes an electronic element connected to a bias input of the output driver for producing a voltage when the pin is defined at one of the two states, and a voltage detector for monitoring the voltage to determine which one of the two states the pin is at, and producing a mode-setting signal accordingly.