The ADM1023 is a 2-channel digital thermometer and under- and overtemperature alarm for use in personal computers and other systems requiring thermal monitoring and management. Optimized for the Pentium® III, the higher accuracy allows systems designers to safely reduce temperature guard banding and increase system performance. The device can measure the temperature of a microprocessor using a diode-connected PNP transistor, which may be provided on-chip with the Pentium III or similar processors; or it can be a low-cost, discrete NPN/PNP device such as the 2N3904/2N3906. A novel measurement technique cancels out the absolute value of the transistor's base emitter voltage so that no calibration is required. The second measurement channel measures the output of an on-chip temperature sensor to monitor the temperature of the device and its environment.