Market Trends of Asia-Pacific Power Transistor Industry
IGBT Transistors is Expected to Hold the Significant Market Share
- An insulated-gate bipolar transistor (IGBT) is a three-terminal power semiconductor device mainly used as an electronic switch. The device consists of four layers, namely, positive-negative-positive-negative- (P-N-P-N-), controlled by a metal-oxide-semiconductor (MOS) gate structure. This structure provides a steady electricity supply by reducing the congestion in the power supply, which leads to optimized power utilization.
- The broad application range of IGBTs has attracted several new companies to venture into the market. IGBT activates/modifies electrical energy in several modern appliances, such as cookers, microwaves, electric cars, trains, variable-frequency drives (VFDs), variable speed refrigerators, air conditioners, lamp ballasts, municipal power transmission systems, and stereo systems, which are well-equipped with switching amplifiers.
- Medium-high-voltage (>650V) IGBT solutions are expected to significantly increase demand. However, in high-voltage power electronics, IGBTs are experiencing high competition, primarily from wide-bandgap (WBG) devices used in the automotive industry. The performance of WBG technologies, like SiC and GaN materials, impacts the market share of existing power devices, including IGBTs.
- However, IGBTs are expected to retain their market share owing to significant applications in the power electronics industry. For example, the low-medium voltage (<650 V) IGBT discrete solutions witnessed high demand from the consumer goods industry for several applications, such as air conditioners, inductive heaters, grids, welding, and white good, primarily due to the need for enhanced energy efficiency.
- Moreover, various market vendors are collaborating to develop IGBT transistors to cater to the growing demand from the automotive sector. For instance, in April 2022, Denso Corporation announced a partnership with United Semiconductor Japan Co. Ltd. to produce power semiconductors at USJC's 300mm fab to cater to the growing demand in the automotive sector. An insulated gate bipolar transistor line will be installed at USJC's wafer fab, the first in Japan to produce IGBTs on 300mm wafers.
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China to Hold a Significant Market Share
- In Asia-Pacific as well as globally, China is the largest consumer of semiconductors, primarily owing to the size of its domestic electronics industry. The country is the largest producer and exporter of consumer electronics in the world. Thus, it is one of the most prominent regions for the market as metal-oxide-semiconductor field-effect transistors (MOSFETs) and insulated-gate bipolar transistors (IGBTs) are used in a wide range of electronic devices.
- The electronics manufacturing industry has continued to maintain steady expansion in recent times. As per the China Academy of Information and Communications Technology, during the first two months of 2022, the added value of major electronics manufacturers rose 12.7% year-on-year, compared with the 7.5% growth seen in the overall industrial sector in the country.
- The country has the largest manufacturing industry in the world. China's industrial output grew by 3.6% in 2022 from the previous year, as per the Ministry of Industry and Information Technology (MIIT), despite production and logistics disruptions from COVID-19 curbs. The output of the manufacturing sector was estimated to have risen by 3.1% in 2022, accounting for 28% of China's gross domestic product (GDP), according to the MIIT. As MOSFETs and IGBTs find widespread use for motor control applications, the sector is expected to continue creating significant demand for the market.
- China also leads in 5G adoption globally. As per GSMA, the number of 5G base stations in China exceeded 2.3 million at the end of 2022, including around 887,000 built during the year. The country will be the first market with 1 billion 5G connections, reaching the milestone by 2025, as per the organization.
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