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This paper analyzes the effect of permanent magnets (PMs) on the formation of chaos in doubly salient PM (DSPM) machines. Based on the newly derived nonlinear system dynamical equation, the corresponding Poincare´ map and bifurcation diagram show that the sizing of PMs significantly affects the stability of DSPM machines. Chaos may be resulted if the PMs are not properly designed. Both computer simulations and experimental results are provided to support the theoretical derivation.