The ATS643 is an optimized combination of integrated circuit and magnet that provides a manufacturer-friendly solution for true zero-speed digital gear-tooth sensing in two-wire applications. The device consists of a single-shot molded plastic package that includes a samarium cobalt magnet, a pole piece, and a Hall-effect IC that has been optimized to the magnetic circuit and the automotive environment. This small package can be easily assembled and used in conjunction with a wide variety of gear shapes and sizes. The integrated circuit incorporates a dual element Hall-effect sensor with signal processing circuitry that switches in response to differential magnetic signals created by rotating ferrous targets. The device contains a sophisticated compensating circuit to eliminate magnet and system offsets immediately at power-on. Digital tracking of the analog signal is used to achieve true zero-speed operation, while also setting the device switchpoints. The resulting switchpoints are air gap independent, greatly improving output and duty cycle accuracy. The device also uses a continuous update algorithm to fine-tune the switchpoints while in running mode, maintaining the device specifications even through large changes in air gap or temperature.