Production Facilities in China Overcome Logistic Challenges to Tide over COVID-19 Crisis
The coronavirus (COVID-19) pandemic has had minor effect on the semiconductor industry. This has led to the hope for speedy economic revival for the discrete diodes market. However, manufacturers in the automotive, communication, and other end-use industries are hesitant to direct investments in new products, due to the global slowdown in economic activities. Hence, companies in the discrete diodes market are diversifying their distribution and supply chains in consumer electronics. The growing eCommerce sector is further aiding in keep economies running during the COVID-19 era.
Partial and complete suspension of production activities in several parts of the world is creating challenges in market expansion. China, being the hub of consumer electronic manufacturing, has been successful in overcoming its logistical, packaging, and testing hurdles. Production facilities in China are anticipated to function with high capacity rates by the first and second quarter of 2024.
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Strong Research in Discrete Components Drive Product Innovation
Manufacturers in the automotive, electronics, and communication sectors are opting for integrated circuits (ICs) with discrete diodes instead of digital circuits. Discrete components are compact with sizes in micrometers and millimeters, which lead to advantages in speed and power consumption, since smaller components have reduced parasitic resistance, capacitances, and inductances. However, manufacturers in end markets should be aware of pros and cons of discrete diodes to efficiently manufacture products.
Linear voltage regulators, for instance, have advantages of simple design, less output ripple, and faster response time compared to other discrete components. However, one must also know its disadvantages such as relatively large space requirement, difficulty in increasing voltage, and requirement of heat sink. Thus, gaining a strong research base in discrete components is helping manufacturers in the discrete diodes market to scale, in terms of product offerings.
TVS Diodes Help Prevent Abnormal Transient Voltages in Automobile Components
Accompanying the computerization of automobiles, protection against ESD (Electrostatic Discharge) has been emphasized. Hence, companies in the discrete diodes market, such as Toshiba— a Japan-based multinational conglomerate, is increasing its production capacities in discrete diodes and components to address risks of surge in static electricity caused to the ECU (Electronic Control Unit). The ever-evolving automotive industry is creating stable revenue streams for companies in the discrete diodes market. This explains why the discrete diodes market is predicted to reach the value of US$ 6 Bn by 2030.
Semiconductor companies are increasing the availability of TVS (Transient-Voltage-Suppression) diodes to protect devices from abnormal transient voltages that penetrate from external terminals to prevent damage and malfunction. Manufacturers are increasing their product lineup in components for the protection of general purpose CAN/LIN lines as well as high-speed signaling types to protect communication lines, such as LVDs (low voltage disconnect).
High-density Packaging, Miniaturization of ECUs Trigger Demand for Discrete Diodes
Manufacturers in the discrete diodes market are increasing their production capabilities in smaller packages. They are focusing on manufacturing TVS diodes to deploy ESD protection. High-density packaging and miniaturization of ECUs is a fast growing phenomenon in the global discrete diodes market. Manufacturers in this market have tremendous opportunities in LED driver solutions and other applications such as in load switches, voltage regulators, and transistors. However, a higher supply side of components compared to the demand explains why the market is slated to register a modest CAGR of 4% during the forecast period. Hence, manufacturers need to constantly innovate in R&D to gain a competitive edge over other market players. For instance, Diodes Incorporated— a manufacturer of high-quality semiconductor products, is gaining proficiency in high performance and optimized packaging of discrete components.
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Defense and Space Platforms Fuel Demand for Reliable Discrete Technologies
Apart from automotive and consumer electronics, manufacturers in the discrete diodes market are expanding their revenue streams within aerospace, defense, and commercial aviation applications. Microchip Technology Incorporated— a leading provider of smart, connected, and secure embedded control solutions, is unlocking growth opportunities in aerospace and industrial applications by delivering high-reliability discrete technologies. Major defense and space platforms are creating new business avenues for semiconductor companies.
In addition, companies in the discrete diodes market are complying with the Joint Electron Device Engineering Council (JEDEC) standards to support latest programs in defense and space sectors. Manufacturers are increasing efforts to build their product portfolio with the help of new screening options and state of the art manufacturing to adapt with changing needs of clients.
Innovative Discrete Solutions Meet Ever-changing Requirements of Designers
Companies in the discrete diodes market are expanding their product lines in rectifier devices, voltage regulator devices, hybrid devices, and transistor devices, among others. Manufacturers are increasing their production capabilities to cater to high temperature applications. For instance, Central Semiconductor Corp. is gaining market recognition for its innovative discrete solutions in order to meet ever-changing requirements of designers. With the help of R&D, manufacturers are increasing their focus in metallization for standard die attach technologies.
Manufacturers are offering top metallization solutions for wire bonding. They are increasing the availability of innovative discrete semiconductor solutions to enable positive temperature co-efficiency. In order to bolster sales of components, companies in the discrete diodes market are providing temperature independent switching characteristics in components. Apart from China, manufacturers in India such as Naina Semiconductor Ltd. (NSL) are tapping into incremental opportunities in countries of the U.S., the U.K., the Middle East, Europe, and South East Asia.
China and Korea Pose as Stiff Competition to Indian Semiconductor Manufacturers
The growing telecom industry in India is creating revenue opportunities for companies in the India discrete diodes market. High quality components are helping to boost company credentials. As such, China and Korea are emerging as a tough competition for manufacturers in India. Manufacturers in the India discrete diodes market are developing a large product range catering to electronic measuring instruments and laboratory improvements. Increased compliance with QM/QS standards is helping manufacturers gain market recognition. As such, manufacturers are increasing their output capacities in zener diodes that are used as voltage regulators.
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