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iC-SM5L is a linear position sensor which operates on the AMR effect (anisotropic magneto resistance) and has been designed to work with magnetic scales which have a N/S pole pitch of 5 mm.
The amplitudes of the differential output voltages are largely independent of the magnetic field strength and thus not sensitive to changes in distance.
iC-SM5L is resistant to strong magnetic fields and not sensitive to external homogenous magnetic fields.