Taiwan Discrete Semiconductor Market Size and Share Analysis - Growth, Trends, and Forecasts (2024 - 2029)

Taiwan Discrete Semiconductor Market Analysis

The Taiwan Discrete Semiconductor Market size is estimated at USD 1.46 billion in 2024, and is expected to reach USD 2.05 billion by 2029, growing at a CAGR of 6.97% during the forecast period (2024-2029).

• The continuous advancements and rising investments in the country's defense industry are expected to drive market expansion. Discrete semiconductors find application in various areas within aerospace and defense, such as power drive controls, flight control, navigation, cabin lighting, avionics, and communications.
• In September 2023, the Taiwanese government plans to invest USD 4.1 billion in researching and developing defense equipment. The projects include creating AIDC T-5 advanced jet trainers, a native submarine prototype, and light frigates. The financial backing is intended to bolster the Taiwanese military's initiative to manufacture 1,779 commercial drones for surveillance and reconnaissance purposes.
• Additional investments will be allocated toward the local advancement of communication technologies and various defense systems to establish the country's defense industry as self-reliant. Such an increase in the defense budget will further support the market growth.
• Moreover, the semiconductor industry in the country is experiencing growth with the government's backing, which will also drive market growth. The National Development Fund revealed that from 2021 to 2025, Taiwanese companies have earmarked a total investment of USD 107 billion for the advancement of the semiconductor sector. Additionally, the government is actively involved in fostering new semiconductor technologies through financial aid and initiatives to attract skilled professionals.
• Furthermore, the automotive sector in Taiwan is ready to strengthen the market during the projected timeline. The Taiwanese government has recently introduced regulations requiring all new passenger cars and scooters to be zero-emission by 2040, with the goal of substantially decreasing the country's carbon emissions and encouraging eco-friendly transportation. In addition, the government aims for a 30% adoption rate for new electric cars by 2030, increasing to 60% by 2035. At the same time, it aims for new electric scooters to make up 70% of the market by 2035.
• The rise in popularity of integrated circuits (ICs) has revolutionized modern technology, providing power to a range of devices such as smartphones, computers, automobiles, and industrial equipment. Nevertheless, this increased demand for ICs has unintentionally challenged the discrete semiconductors market in Taiwan.
• Numerous macroeconomic factors, including economic expansion, inflation, government expenditure preferences, international trade, and geopolitical circumstances, impact the country's defense budgets. For instance, in September 2023, the Taiwanese government revealed its plan to boost its overall defense budget to a historic NTD 606.8 billion (USD 19.1 billion), which is equivalent to 2.6 percent of the GDP. This signifies a 3.5 percent nominal rise compared to the previous year's budget of NTD 586.3 billion.

Taiwan Discrete Semiconductor Market Trends

Power Transistor Segment is Expected to Hold Significant Market Share

Taiwan Discrete Semiconductor Industry Segmentation

Discrete semiconductors are singular components contained within their own packaging, separate from other elements. Unlike integrated circuits (ICs) that have the capacity to contain thousands, or even billions, of transistors in a single package, discrete semiconductors are restricted to carrying out a single, designated task.

The study tracks the revenue accrued through the sale of discrete semiconductor by various players in the Taiwanese market. 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 Taiwan discrete semiconductor market report is segmented by type (diode, small signal transistor, power transistor [MOSFET power transistor, IGBT power transistor, and other power transistors], rectifiers, and thyristors) and end-user vertical (automotive, consumer electronics, communication, industrial, and other end-user verticals). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.