The TMAG5124 is typically used in magnetic-field sensing applications to detect the proximity of a magnet. The magnet is often attached to a movable component in the system.

The TMAG5124 is a Hall sensor that uses current as the signal of interest. Unlike voltage signals, current signals are much more robust for common problems voltages face in electrical systems, such as voltage source fluctuations and source impedance. A major factor that often leads to the choice of a current signal device is immunity to loop impedance, meaning the signal is capable of being transmitted long distances with ease. To accomplish this, the device requires a termination resistor at the end of the path for interfacing the reconstructed voltage to an input, such as a comparator. Also, diagnostic tools are easily implemented, as disconnects in the loop are easily detected due to a lack of signal.