Market Trends of China Semiconductor Diode Industry
Automotive to Witness a Significant Growth in the China Semiconductor Diode Market
- High-voltage silicon-carbide diodes are designed for usage in telematics, ADAS, power and infotainment systems, and instrument clusters in automobiles. China is one of the significant contributors to the automotive semiconductor market. Furthermore, ADAS systems have grown in popularity in the country, with features like parking assist, adaptive cruise control, lane-departure warning, forward collision warning, and blind-spot recognition contributing significantly to the market's growth.
- Moreover, stringent government rules and regulations regarding vehicle emissions are boosting the automotive sector. For instance, according to IEA, domestic OEMs dominate the Chinese EV industry, with a sales share of roughly 94%. China has put a quota on automakers for 100% electric or hybrid vehicles, which may account for at least 10% of total new vehicle sales. Furthermore, some large cities and provinces are enacting stricter regulations. Aside from that, manufacturers in the country are working to minimize their present GHG emissions by optimizing their powertrain system design and focusing on lightweight and smaller powertrain systems that deliver higher performance.
- In automobiles, diodes are used to connect solenoids. When the B+ is turned off, the coil's magnetic field collapses, including the current flow in the coil, and the current passes through the diode as the current is in the same direction as the diode arrow, which previously blocked the B+. For instance, according to the China Association of Automobile Manufacturers, approximately 965,000 passenger vehicles and 216,000 commercial automobiles were sold in China in April 2022, representing a 48% and 42% decrease from the previous month, respectively. Such massive vehicle sales will allow the studied market to grow.
- Additionally, the country is witnessing various partnerships by major vendors to boost the automotive industry. For instance, Autoliv China, a subsidiary of the automotive safety systems company Autoliv, Inc, and Geely Auto Group, a prominent global automobile manufacturer, announced a strategic cooperation agreement in October 2022 to develop advanced safety technology for future vehicles. The partnership will span 16 technologies and take a system approach to car safety.
- Taiwan Semiconductor Manufacturing Co. has announced a USD 2.8 billion investment in China to increase automobile semiconductor manufacture. To accommodate the increased demand for 28-nanometer car chips, TSMC is likely to establish new manufacturing lines at an existing Nanjing plant, which is expected to commence mass production in 2023.
- CAAM reports that from January 2021 to August 2023, passenger and utility vehicle sales in China witnessed a notable trend. Specifically, in August 2023, China saw sales of around 2.3 million passenger cars and 310,000 commercial vehicles, marking a significant uptick from the preceding month.
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Proliferation of smartphones will drive the market
- The increasing demand for smartphones with various functions, such as phones that can be used as an FM radio, MP3 player, MP4 player, handheld TV, memo recorder, camera, or even a projector, is increasing. This increased number of signals has increased the requirement for signal routing solutions. These solutions require diodes with smaller sizes and higher functionality, enabling mobile phone designers to continue pushing for smaller form factors while providing enhanced design features. This technological need is driving the diodes market to grow.
- According to the National Bureau of Statistics of China, as of March 2024, China boasted a staggering 1.75 billion mobile cell phone subscriptions. Official government data revealed an impressive 99.8% penetration rate for mobile internet in the nation.
- Zener diodes are used in voltage regulators, reference elements, surge suppressors, switching applications, and clipper circuits. For instance, in July 2022, Toshiba Electronic Devices & Storage Corporation ("Toshiba") launched 'CSLZ series' Zener diodes that protect semiconductor devices from switching surges, induced lightning surges, and electrostatic discharges (ESD). This lineup has 10 products having Zener voltage (typ.) ranging from 5.6 V to 30 V.
- Moreover, there is enhanced activity from the semiconductor fabrication facilities in China, Singapore, and Korea. Numerous multinational manufacturers of memory direct a large amount of investment into the Chinese semiconductor fabrication market. The country's government initiatives, such as Made in China 2025, especially support these initiatives. Such initiatives are expected to draw more investments into the country, thus driving the market over the forecast period.
- Furthermore, smart wearables require powerful miniaturized diodes. For example, the 0402-sized Schottky barrier diodes are 44 percent smaller than the traditional 0603 sizes (0.6mm 0.3mm), with 56 percent less mounting space. They are used in smart wearables, and the demand for these small, powerful diodes will grow in China due to the rise in the demand for smart wearables.
