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In this paper, a CMOS phase to digital transducer for optical incremental sensors is newly proposed. This chip adopts a proposed phase-shift method to easily generate phase shifts of signals by using a resistor chain. Different to PLL-based and ADC-based interpolation, the complexity and hardware cost can be relaxed in this proposed chip. Based upon the device parameters of 0.5 μm 2P2M CMOS technology with 5 V power supply, all the functions and performance of the proposed CMOS phase to digital transducer for optical incremental sensors are successfully tested and proven through measurements. The physical layout including ESD I/O pads is 2010 × 1500 μm2. The proposed chip is suitable for optical incremental sensors.