ATTINY85 I2C Modules

Hello. I am trying to design PCB modules that can read and process two encoders and send the data to a master Arduino. The modules will each have an ATTINY85 that processes and sends data to the master over I2C. However, I just realized that one of the encoders only outputs I2C data, meaning that it would have to be connected to the main I2C line and would interfere with the other identical devices. The sensor is the AS5600 which has a single fixed address. (I can't use the PWM output because it is too slow) The only solution I could think of is multiplexing it but I want to limit IC's to save space. Any other ideas?

After doing some research I think I have found a solution:
I am going to switch to a microcontroller with a few more pins and open a software i2c bus. I'm going to communicate to the encoder on that bus and to the master Arduino on the hardware line.

I2C is a bus. It should be perfectly possible to connect to a number of devices using it. Each device just needs a different address.

...R

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