Another very precise voltage reference can be created using two current mirror transistors. A constant current source is generated by these transistors. The resistor at one of the transistors emitter is dimensioned to produce the required reference voltage. Another resistor which is connected in series with the supply voltage is also selected such that a potential difference of precise1.2 volts is formed across it, this is called the band gap reference voltage.
Any variation in the ambient temperature causes the potential across the emitter resistor of the current mirror transistor to change. This difference of voltage is sensed by the third transistor which compensates by pulling down any rise in current through the current mirror transistor and thus nullifying the external effects of temperature or voltage variations.