South Korea Discrete Semiconductors Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.63 Billion |
| Market Size (2029) | USD 2.25 Billion |
| CAGR (2024 - 2029) | 6.65 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South Korea Discrete Semiconductors Market Analysis
The South Korea Discrete Semiconductors Market size is estimated at USD 1.63 billion in 2024, and is expected to reach USD 2.25 billion by 2029, growing at a CAGR of 6.65% during the forecast period (2024-2029).
- South Korea has been leading the way in adopting Industrial IoT, owing to its thriving manufacturing industry and unwavering government backing for technological advancement. With its impressive technological progress and industrial prowess, the country has the potential to excel in this market segment and boost its economic growth. Given the promising revenue and expansion opportunities in the Industrial IoT market, South Korea has a chance to establish itself as a critical player in this sector.
- The solid automotive sector in South Korea is expected to provide profitable prospects for expanding the discrete semiconductor market. Due to the increasing global interest in electric vehicles and the backing from the government to enhance local production, South Korean car manufacturers like Hyundai, Kia, and Genesis are concentrating on boosting their production capacity and making substantial investments in research and development.
- The South Korean discrete semiconductor market is on an upswing, propelled by a surge in electronic manufacturers seeking swift, compact components that bolster production efficiency. Diodes, transistors, thyristors, and modules are pivotal in meeting these demands. The market is set to be further fueled by the demand for discrete semiconductors in automotive applications, spanning safety, navigation, infotainment, and fuel efficiency. Industrial sectors, including transportation, security, automation, solid-state lighting, and energy management, are also expected to be significant market drivers.
- Manufacturers' preference for integrated circuits impedes the industry's growth. The sector's continued focus on integrated circuits and a shortage of technological advancements pose significant challenges, constraining the discrete semiconductor industry's growth in the coming years. The industry's growth faces hindrances as manufacturers increasingly favor integrated circuits. With the sector's persistent reliance on integrated circuits and a lack of notable technological advancements, the discrete semiconductor industry is poised to grapple with substantial challenges in the foreseeable future.
- Macroeconomic factors like South Korea's trade policies and trade relationships with major economies like China, the United States, and the European Union significantly impact the semiconductor industry. Tariffs, trade restrictions, and international agreements can facilitate or hinder growth. In addition, disruptions in the supply chain, such as shortages of raw materials and logistics issues, can impact production and distribution.
South Korea Discrete Semiconductors Market Trends
Automotive is Expected to Witness a Significant Growth
- Automotive demands fuel the market for discrete components, particularly power transistors and rectifiers. While traditional vehicles have relied on 12-V battery systems for decades, they are now struggling to support the increased electronic demands of modern cars, highlighting the necessity for more energy-efficient solutions. In modern electric vehicles, the demand for discrete semiconductors is growing as these are used for power distribution and transmission. While traditional gasoline automobiles rely on efficient electrical component usage, discrete semiconductors notably boost performance.
- South Korea has emerged as a critical player in the global automotive sector, solidifying its position on the world stage in the past few years. The automotive industry and South Korea's semiconductor sector are a linchpin in the nation's export expansion and economic progress. Following integrated circuits, automobiles represent the second-largest export segment. According to Invest Korea, in 2023, vehicle exports were valued at USD 70.9 billion. This marked a 30% increase from the previous record, driven mainly by the export of high-value eco-friendly cars.
- With South Korea's transition to EVs, car companies building SiC-based inverter prototypes have rapidly increased in the past few years, driving the growth of the market. In the sector, the primary applications for SiC power MOSFETs, diodes, and modules are onboard electric vehicle (EV) chargers, DC/DC converters, and drivetrain inverters. Plug-in hybrid EVs and BEVs use onboard chargers to refuel the vehicle battery at home or a public charging station.
- For instance, in 2023, South Korea was set to overhaul its EV subsidy policy, prioritizing local manufacturers that excel in performance, infrastructure, battery density, and pricing. This move is poised to notably advantage Hyundai and Kia. The subsidies are set to vary, spanning from KRW 2.5 million to KRW 6.8 million (equivalent to USD 1,867 to USD 5,078), with vehicles priced over KRW 85 million (USD 63,481) being excluded from the subsidy bracket.
Power Transistors is Expected to Hold Significant Market Share
- A silicon (Si) MOSFET is a discrete semiconductor device commonly used in electronic circuits for amplifying or switching electronic signals. The voltage to the gate determines the device's conductivity, allowing it to change conductivity with the amount of applied voltage. MOSFET power transistors are crucial in efficiently functioning electric vehicles (EVs). They are employed in motor drive systems, battery management systems, DC-DC converters for auxiliary systems, etc. The robust growth of EVs in South Korea will likely drive the development of the market.
- For instance, in June 2024, Infineon Technologies AG is broadening its range of next-gen OptiMOS 7 MOSFETs tailored for automotive applications. The 40 V lineup now features new additions in durable, lead-free packages. Moreover, the SSO8 package now accommodates the 80 V and 100 V OptiMOS 7 MOSFETs. The MOSFETs have been designed to suit current and anticipated automotive applications at 48 volts. These applications encompass electric power steering, braking systems, power switches, and battery management.
- Owing to the various benefits associated with incorporating SiC in MOSFETs, the market is observing a significant number of product launches, driving the growth of the market studied. For instance, in February 2024, SemiQ added to its silicon carbide N-channel MOSFET portfolio with full-wave H-bridge modules. As per the company, the parts are intended for triple-threat applications requiring high-voltage, high-speed, and high-power parts. The high efficiency, high junction temperature tolerance, and ceramic packaging are claimed to reduce heat sinking and increase mechanical placement flexibility.
- The increasing demand for consumer electronic appliances like air conditioners, power conditioners, etc., which use discrete IGBT types for lower-current applications, is credited with driving the growth of the discrete IGBT market. Discrete IGBTs have been found to have the lowest power losses in consumer goods, which is anticipated to be a key factor influencing the growth of the segment in the market.
- For instance, in February 2024, Vishay Intertechnology introduced a line of IGBT power modules housed in a revamped INT-A-PAK package. These half-bridge devices, leveraging trench IGBT technology, provide the flexibility of opting for either low VCE(ON) or low Eoff, catering specifically to high-current inverter stages. The company's release includes a total of five of these upgraded modules.
South Korea Discrete Semiconductors Industry Overview
The South Korean discrete semiconductors market is fragmented, with the presence of major players like Vishay Intertechnology Inc., STMicroelectronics NV, Renesas Electronics Corporation, Infineon Technologies AG, and On Semiconductor Corporation., among others. Players in the market are adopting strategies such as partnerships, mergers, innovations, investments, and acquisitions to enhance product offerings and gain sustainable competitive advantage.
- In June 2024, Geely Auto announced its plans to enhance its NEV (New Energy Vehicle) strategy through a strategic SiC (Silicon Carbide) supply deal and a collaborative lab with STMicroelectronics. The partnership leverages STMicroelectronics' third-gen SiC MOSFETs to boost powertrain efficiency in Geely's electric vehicles. ST has secured a multi-year contract to supply SiC power devices to several Geely Auto brands. These devices are earmarked for the mid-to-high-end battery electric vehicles (BEVs).
- In February 2024, Infineon Technologies AG and VMAX collaborated to enhance the efficiency and affordability of fast-charging solutions for electric vehicles. VMAX, a prominent producer of power electronics and motor drives for electric vehicles, has opted for Infineon's latest technologies, including the CoolSiC hybrid discrete, TRENCHSTOP 5 Fast-Switching IGBT, and CoolSiC Schottky Diode. These components will power VMAX's upcoming 6.6 kW OBC/DCDC onboard chargers, marking a significant step in the collaboration.
South Korea Discrete Semiconductors Market Leaders
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Vishay Intertechnology Inc.
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STMicroelectronics NV
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Renesas Electronics Corporation
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Infineon Technologies AG
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On Semiconductor Corporation
*Disclaimer: Major Players sorted in no particular order
South Korea Discrete Semiconductors Market News
- April 2024: Magnachip Semiconductor Corporation introduced its latest offering, the 40V MXT MV MOSFET, expanding its portfolio to 13 MOSFET and IGBT products tailored for automotive applications. Branded as the AMDD040N055RH and housed in the Decawatt Package (DPAK), this MOSFET is primed for a spectrum of automotive uses, from motor control and power seat modules to enhancing electric stability control systems, notably for reverse battery protection.
- February 2024: Vishay Intertechnology introduced its latest innovation: a versatile 30 V n-channel TrenchFETGen V power MOSFET. This innovative MOSFET boasts enhanced power density and delivers superior thermal efficiency, rendering it ideal for diverse applications across industrial, computer, consumer, and telecom domains. Housed in the compact 3.3 mm by 3.3 mm PowerPAK1212-F, the Vishay SiliconixSiSD5300DN features state-of-the-art source flip technology.
South Korea Discrete Semiconductors Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Advancements in 5G Technology
5.1.2 Rising Demand for High-Energy and Power-Efficient Devices in the Automotive and Electronics Segment
5.1.3 Rising Demand for Electronic Components
5.2 Market Challenges
5.2.1 Increasing Design Complexity Due to Miniaturization
5.2.2 Rising Demand for Integrated Circuits
5.2.3 High Cost of Raw Materials
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Diode
6.1.2 Small Signal Transistor
6.1.3 Power Transistor
6.1.3.1 MOSFET Power Transistor
6.1.3.2 IGBT Power Transistor
6.1.3.3 Other Power Transistors
6.1.4 Rectifier
6.1.5 Thyristor
6.2 By End-user Vertical
6.2.1 Automotive
6.2.2 Consumer Electronics
6.2.3 Communication
6.2.4 Industrial
6.2.5 Other End-user Verticals
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Vishay Intertechnology Inc.
7.1.2 STMicroelectronics NV
7.1.3 Renesas Electronics Corporation
7.1.4 Infineon Technologies AG
7.1.5 On Semiconductor Corporation
7.1.6 Texas Instrument Inc.
7.1.7 Qorvo Inc.
7.1.8 Microchip Technology Inc.
7.1.9 Diodes Incorporated
7.1.10 Mitsubishi Electric Corporation
7.1.11 Rohm Co., Ltd.
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
South Korea Discrete Semiconductors Industry Segmentation
Discrete semiconductors are individual devices housed in their package, distinct from other components. In contrast to integrated circuits (ICs), which can house thousands, even billions, of transistors in a single package, discrete semiconductors are limited to performing a single, specific function.
The study tracks the revenue accrued through the sale of discrete semiconductor products by various South Korean end-user industries by various players. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market. The report's scope encompasses market sizing and forecasts for the various market segments.
The South Korean discrete semiconductors market is segmented by type (diode, small signal transistor, power transistor [MOSFET power transistor, IGBT power transistor, and other power transistors], rectifier, and thyristor), and end-user vertical (automotive, consumer electronics, communication, industrial, and other end-user verticals). The market sizes and forecasts are provided in value in terms of USD for all the above segments.
| By Type | |||||
| Diode | |||||
| Small Signal Transistor | |||||
| |||||
| Rectifier | |||||
| Thyristor |
| By End-user Vertical | |
| Automotive | |
| Consumer Electronics | |
| Communication | |
| Industrial | |
| Other End-user Verticals |
South Korea Discrete Semiconductors Market Research FAQs
How big is the South Korea Discrete Semiconductors Market?
The South Korea Discrete Semiconductors Market size is expected to reach USD 1.63 billion in 2024 and grow at a CAGR of 6.65% to reach USD 2.25 billion by 2029.
What is the current South Korea Discrete Semiconductors Market size?
In 2024, the South Korea Discrete Semiconductors Market size is expected to reach USD 1.63 billion.
Who are the key players in South Korea Discrete Semiconductors Market?
Vishay Intertechnology Inc., STMicroelectronics NV, Renesas Electronics Corporation, Infineon Technologies AG and On Semiconductor Corporation are the major companies operating in the South Korea Discrete Semiconductors Market.
What years does this South Korea Discrete Semiconductors Market cover, and what was the market size in 2023?
In 2023, the South Korea Discrete Semiconductors Market size was estimated at USD 1.52 billion. The report covers the South Korea Discrete Semiconductors Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South Korea Discrete Semiconductors Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South Korea Discrete Semiconductors Industry Report
Statistics for the 2024 South Korea Discrete Semiconductors market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Korea Discrete Semiconductors analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
