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In order to improve the performance of Engine Management System (EMS), it becomes more important to accurately detect the position of cam and crank with rotation sensors, usually as referred cam and crank sensor. In addition, expectations for the idle stop system to follow the reinforcement of emission regulations require cam and crank sensors to implement the function of reverse rotation detection. This paper discusses our development of a new generation rotation sensor (MR3) that uses AMR (Anisotropic Magneto Resistance) for accurate rotation detection to meet all system and market demands with minimum number of components to achieve high quality but less expensive price.