In high volume electronics there are circuit boards with the common components (like SMT caps, resistors, inductors, transistors...). You also sometimes see a bump of what looks like epoxy, covering .... something.

It looks like there is a custom circuit under there, and it usually has some logic functions judging from the inputs and outputs. Many of these kinds of circuits are for domestic, low tolerance devices with digital user interfaces.

What is the industry term for these, and any other info would be much appreciated.

its a simple microprocessor.

Quoted: its a simple microprocessor.

why is it potted with epoxy, and not an SMT chip or something?

ETA: or is it an smt chip with potting over it for thermal or RF reasons...?