Market Trends of Europe Discrete Semiconductor Industry
Power Transistor Segment Holds the Significant Market Share
- A MOSFET, also known as a metal-oxide-semiconductor field-effect transistor, is frequently utilized in discrete semiconductors, digital logic, integrated circuits (ICs), and thin-film transistor (TFT) LCDs. This particular type of transistor is designed for amplifying or switching electronic signals.
- MOSFET power transistors are essential for the optimal operation of electric vehicles (EVs). They are used in motor drive systems, battery management systems, and DC-DC converters for auxiliary systems. The increasing popularity of EVs in the country is expected to propel the expansion of the market.
- The automotive sector depends significantly on silicon MOSFET discrete semiconductors for various purposes. These MOSFETs are utilized in electronic control units (ECUs), battery management systems, motor control units, and automotive lighting systems. Their capacity to manage high voltages and currents and their durability position them as the top choice in challenging automotive conditions.
- In 2023, the European Union car market witnessed a notable increase of 13.9% from 2022, leading to a total sales volume of 10.5 million units for the whole year, as per the European Automobile Manufacturers' Association (ACEA) report.
- Furthermore, the market has witnessed a notable increase in product launches due to the numerous advantages of incorporating SiC in MOSFETs, significantly impacting the segment. For instance, in November 2023, Nexperia introduced its initial silicon carbide (SiC) MOSFETs through the launch of two 1200 V discrete devices in 3-pin TO-247 packaging with RDS(on) values of 40 mΩ and 80 mΩ. This product caters to the growing market need for a wider range of high-performance SiC MOSFETs in various industrial applications, such as electric vehicle charging stations, uninterruptible power supplies, and inverters in solar energy storage systems.
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Germany is Expected to Hold Significant Market Share
- Germany has been identified as the leading semiconductor production center in Europe, according to Germany Trade & Invest (GTAI). The sector holds the second position in terms of employment figures. Germany aims to strengthen its semiconductor manufacturing sector to establish a substantial portion of the global semiconductor production in Europe by 2030, as outlined in an official government document. The goal is to reach at least 20% of global semiconductor production.
- Furthermore, Germany's Federal Minister has rolled out the Industrial Strategy 2030, a comprehensive blueprint to bolster the nation's manufacturing sector's competitiveness. These new policies and initiatives are set to boost industrial production and paint a positive outlook for the market under study.
- Moreover, Germany, in particular, stands out globally as a significant automotive hub, thanks to the presence of key manufacturing companies like Volkswagen AG and Daimler AG. The German automotive industry has been leading technological innovations in the global automotive industry, integrating smart technologies.
- Companies are focusing on electric vehicle technologies, expecting the rise of hybrid and electric vehicles to fuel the expansion of the country's automotive sector. This is expected to positively affect the European discrete semiconductors market's growth.
- Similarly, the VDA reported that approximately 4.12 million German vehicles were manufactured in 2023, a rise from the 3.4 million cars produced in 2022. These trends are fueling an increase in market demand.
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