Market Trends of China Discrete Semiconductors Industry
Consumer Electronics is Expected to Witness a Significant Growth
- China's consumer electronics market is witnessing a surge, positioning the country as a significant player on the global stage. This growth is propelled by several factors: the expanding reach of e-commerce, a steady uptick in Chinese consumers' disposable incomes, ongoing product innovations, technological advancements, and, crucially, government backing. In addition, China's consumer electronics market is poised for continued expansion in the coming years, driven by rising demand for smart homes, augmented and virtual reality technologies advancements, and the rollout of 5G networks.
- China leads the global 5G market, with projections indicating that 5G will surpass 4G as the primary mobile technology in the country by 2024. GSMA forecasts that by 2025, China will boast the highest number of 5G connections globally, with an estimated 1 billion users. China unveiled the Layout Plan for the Construction of Digital China, a strategic roadmap aligning with its 'Digital China 2035' vision. This initiative aims to propel China into a significant global digital innovation player by 2035.
- Players in the market are launching discrete semiconductors for consumer electronics, further supporting the market growth. For instance, in February 2024, Vishay Intertechnology introduced a highly versatile 30 V n-channel Trench FETGen V power MOSFET. This MOSFET provides enhanced power density and high thermal efficiency, making it suitable for various applications across various sectors such as computer, consumer, and telecom. The compact 3.3 mm by 3.3 mm PowerPAK1212-F package houses the Vishay SiliconixSiSD5300DN, incorporating advanced source flip technology.
- The growth of governmental initiatives in strengthening the country's semiconductor ecosystem and the country's emergence as a global producer of consumer electronic sectors would support the market growth. China's household appliance industry has burgeoned into a multi-billion dollar sector. Data from the National Bureau of Statistics of China reveals that in April 2024, the retail sales value of household appliances and consumer electronics in China surpassed CNY 64 billion (USD 8.96 billion).
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Power Transistors is Expected to Hold Significant Market Share
- An insulated gate bipolar transistor is a three-terminal semiconductor switching device that can be applied to many electronic devices for quick and efficient switching. These devices are typically used in amplifiers for switching/processing complex wave patterns with pulse width modulation (PWM). It comes in both Discrete and Modular varieties. Power semiconductors are being deployed quickly and widely, which has led to severe reliability concerns due to the scant field data and potential uncertainties. In this sense, the market for IGBTs is expanding significantly.
- The industrial sector is one of the major end-users of the IGBT power transistor. The rapidly advancing trend of Industry 4.0 in China with initiatives like "Made in China 2025" to enhance its manufacturing prowess and nurture high-tech sectors has created a stream of opportunities for market participants, which is one of the factors driving the need for IGBTs in motor drive applications. Many businesses continue replacing conventional motors with advanced motor drives to simplify operations and improve output.
- The automotive industry heavily relies on silicon MOSFET discrete semiconductors for various applications. MOSFETs are used in electronic control units (ECUs), battery management, motor control, and automotive lighting systems. Given their capacity to manage high currents, voltages, and durability, these components are the top choice for demanding automotive settings. MOSFET power transistors are crucial in efficiently functioning electric vehicles (EVs). They are employed in motor drive systems, DC-DC converters for auxiliary systems, etc. The robust growth of EVs is likely to drive the development of the studied market.
- As battery capacity rises, the energy savings from SiC MOSFETs also grow. Initially, these MOSFETs were exclusive to mid to high-end EVs with larger batteries. However, with the emergence of mainstream and budget vehicles like the Chevrolet Bolt EV, Volvo EX40, Kia Niro EV, and Nissan Leaf Plus EV, all boasting battery capacities exceeding 50kWh, SiC MOSFETs are poised to make inroads into China's mainstream passenger vehicle market, thus driving the market demand studied.
