This reference design demonstrates the implementation of a capacitive touch button using an MSP430™ MCU with CapTIvate™ technology in an ultra-small 3.5-mm width PCB. This button is commonly used as a set button in proximity switches. In combination with the highly integrated IO-Link PHY: a flexible output: either PNP or NPN: is realized. This SIO stage protects against reverse polarity: ESD: EFT: and surge: allowing the design to meet IEC 61000-4 standards. The Hall sensor with an analog output signal enables flexible usage by touching the distance of the magnetic object with the capacitive touch button. The analog signal is captured by the integrated ADC of the MCU.