Asia-Pacific Semiconductor Diode Market Size

Asia-Pacific Semiconductor Diode Market Analysis

The Asia-Pacific semiconductor diode market is valued at USD 2.46 billion in the current year. It is expected to grow at a CAGR of 3.1% during the forecast period to register a value of USD 2.87 billion by the next five years.

Integrated circuits (ICs) containing diodes are becoming increasingly popular among manufacturers in the automotive, electronic, and communication industries. With sizes in the micrometer and millimeter range, discrete components are compact. This improves speed and power consumption due to the lower parasitic resistance, capacitances, and inductances of smaller components. As a result, there is an increasing need for unique and personalized diodes.

The growing demand for various signals has heightened the need for signal-routing solutions. These solutions necessitate smaller diodes with greater functionality, allowing mobile phone designers to continue pushing for smaller form factors while providing enhanced design features. This technological requirement is propelling the growth of the market studied.

For instance, in May 2023, the smallest light-emitting diode (LED) made of silicon was produced by researchers from the Singapore-MIT Alliance for Research and Technology (Smart). Even though it is small, this LED can achieve 50 mW/cm², which is similar to much larger diodes. The emitted light is in the infrared spectrum because its wavelength is about 1,100 nanometers.

Furthermore, the growing demand for electric vehicles is also driving the growth of the Asia-Pacific semiconductor diode market . For example, the National Electric Mobility Mission Plan (NEMMP) and the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME I and II) programs aided in generating initial interest and exposure to electric mobility. For example, in phase two of FAME, the government announced a USD 1.4 billion investment through 2022. This phase will fund 7,090 e-buses, 500,000 electric three-wheelers, 550,000 electric passenger vehicles, and 1,000,000 electric two-wheelers. Hence, various types of diodes are used in the manufacturing process of EVs.

The market is being driven by the increasing use of high-power laser diodes in autonomous vehicle technologies. High laser beams, which are converted into white light and directed onto the road via tiny reflectors by the high light density of the laser, are in demand for autonomous vehicles, allowing drivers to see 600 metres ahead of them (about double the distance possible with previous LED high beams).

However, manufacturers must constantly upgrade their products in design, power consumption, processing power, and user interface to gain a significant market share. Companies incur substantial initial costs to achieve the specifications mentioned above in their products. Providing higher functional products at lower prices is difficult in this market because a product in this segment always requires an upgrade before reaching economies of scale.

COVID-19 negatively impacted the diodes market due to the disruption in the supply. There were shortages in the raw material supply and a considerable decline in demand that persisted through the end of 2020. According to IPC's survey of electronics businesses, around 69% of the respondents were informed that their suppliers' delayed shipments due to COVID-19. Furthermore, owing to the pandemic, most companies delayed their hardware upgrades and other long-term migration projects.