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Global Discrete Semiconductor Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 223 Pages
  • February 2022
  • Region: Global
  • Mordor Intelligence
  • ID: 4774984

The Global Discrete Semiconductor Market is expected to register a CAGR of 4.5% during the period of 2022-2027. The discrete semiconductor market is driven by the increasing need to manage power across electronics and miniaturization. The reduction in package size is inversely proportional to power dissipation. For instance, NXP semiconductors achieved a 55% reduction in packaging size for their transistors range by retaining the same power performance. Additionally, Diodes Incorporated launched 40V-rated DMTH4008LFDFWQ and 60V-rated DMTH6016LFDFWQ automotive-compliant MOSFETs packaged in DFN2020.

Key Highlights

  • Moreover, characteristics like safety, infotainment, navigation, and fuel efficiency in the automotive components, and security, automation, solid-state lighting, transportation, and energy management in industrial components are expected to fuel the market studied. For instance, an insulated gate bipolar transistor (IGBT) is an integral component in the EV power electronics system. IGBTs are expected to witness significant demand due to increasing sales of EVs globally. As per the IEA report, sales of electric cars globally reached 6.6 million in 2021. Electric cars accounted for 9% of global car sales.
  • Commercialization of these electric vehicles is on the rise. Volvo is aiming for 50% of its sales to be made up of fully electric cars by 2025. BMW has also dropped their i5 plans and will now focus on electrification of other series models like the X3 and 4 Series GT. The latter will directly compete with Tesla's Model 3 and Model y.
  • Furthermore, the companies are developing new solutions in the power module segment to expand their presence and increase market share. For instance, In December 2021, STMicroelectronics, a prominent semiconductor company serving customers across the spectrum of electronics applications, has announced the release of its third generation of STPOWER silicon-carbide (SiC) MOSFETs1, advancing the state-of-the-art in power devices for electric-vehicle (EV) powertrains and other applications where power density, energy efficiency, and reliability are key target criteria.
  • In contrast, the COVID-19 outbreak has had an enormous impact on the global and national economies. Many end-user industries have been affected, including discrete semiconductors. A large part of the manufacturing of electronic components includes work on the factory floor, where people are in close contact as they collaborate to boost productivity. Currently, companies in the market are quickly evaluating the impacts on three fronts: market demand, supply chain, and workforce. Demand for the product is shifting across ASICS, memory, sensors, etc., while consumer behavior changes rapidly and with future volatility. Also, many companies have delayed their hardware upgrades and other long-term migration projects. For instance, the rollout of the 5G plan has been delayed in many countries, such as India, Japan, Poland, and Israel, which, in turn, caused uncertainty for the launch of commercial 5G services.
  • The global supply chains are disrupted as the virus spreads across the world, as still there is uncertainty over quarantine durations. Many manufacturing factories were shut down across the world to contain the deadly virus. For instance, most of the manufacturing facilities of On Semiconductors were shut down due to government mandates in countries like Malaysia, China, Malaysia, and the Philippines, which impacted its ability to supply products to its clients and created a gap in demand and supply.

Key Market Trends

The Automotive Segment is Expected to Drive the Market's Growth

  • Automotive is one of the emerging sectors of the discrete semiconductors market and is estimated to have a significant share with an increase in the adoption of EVs and HEVs. The increased demand for discrete semiconductors can be attributed to innovations, like autonomous vehicle technology, regenerative braking, and the inclusion of a variety of sensors (like LiDAR and cameras). Furthermore, government regulations for mandatory advanced driver assistant systems (ADAS) have aided the growth in this segment. Electronic components in the automotive industry are critical for safety and are subjected to extreme voltages and environmental conditions. This has driven the manufacturers to develop a new line of discrete semiconductors for automotive applications.
  • In December 2021, STMicroelectronics introduced its third generation STPOWER silicon-carbide (SiC) MOSFETs, advancing the power devices for electric-vehicle (EV) powertrains and other applications where power density, energy efficiency, and reliability are essential to target criteria.
  • In March 2021, Infineon Technologies launched the 650 V CoolSiC Hybrid Discrete for automotive applications, which contains a 50 A TRENCHSTOP 5 fast-switching IGBT and a CoolSiC Schottky diode to enable a cost-efficient performance boost and high reliability. The combination builds a cost-performance trade-off for hard-switching topologies and sustains high system integrity in addition to bi-directional charging. This feature makes it suitable for fast switching automotive applications such as onboard chargers (OBC), power factor correction (PFC), DC-DC, and DC-AC converters.
  • The EVs market is highly competitive, and new manufacturers are pushing the envelope for innovation. For instance, Porsche equipped its Taycan with an 800 V system while many contemporary electric cars operate with 400 V batteries. This led traditional automotive component manufacturers to develop their discrete semiconductor lineup for the automotive sector.
  • In March 2021, Alpha and Omega Semiconductor Limited, a designer, innovator, and global supplier of power semiconductors, power ICs, and digital power products, released AEC-Q101 qualified 1200V silicon carbide (SiC) αSiC MOSFETs in an optimized TO-247-4L package. It is intended for the high efficiency and reliability requirements of electric vehicle (EV) onboard chargers, motor drive inverters, and off-board charging stations. The 1200V SiC MOSFETs provide low on-resistance for an automotive-qualified TO-247-4L with a standard gate drive of 15V.
  • Additionally, In June 2020, Nexperia, an expert in essential semiconductors, announced the industry’s widest portfolio of automotive-qualified discrete in space-saving, thermally-efficient, AOI-compatible DFN (Discrete Flat No leads) packages. The AEC-Q101 range of devices available cuts across all company’s product groups and includes switching, Zener, Schottky, and protection diodes, bipolar junction transistors (BJTs), N- and P-channel MOSFETs, resistor-equipped transistors, and LED drivers.

The Americas is Expected to Hold a Major Market Share

  • North America is one of the prominent markets, owing to the large automotive and other industries in the region that consumer discrete semiconductors. Vendors, such as On Semiconductor Corporation, Diodes Incorporated, and D3 Semiconductor LLC, among others, are headquartered in the region. In August 2020, US-based Central Semiconductor Corp., a manufacturer of innovative discrete semiconductor solutions, introduced its new portfolio of Silicon Carbide (SIC) Schottky Rectifier die. Optimized for high-temperature applications, these devices are available in both 650V and 1200V, with a current range of 2A and 50A for 1,200V devices and 4A to 30A for 650V devices.
  • The United States is a significant country for manufacturing, design, and research in the semiconductor industry. The region's prominence drives demand in exporting electronics equipment and growing end-user industries that are major consumers of semiconductors such as consumer electronics, automotive industry, etc.
  • The semiconductor industry(including discrete) in the United States is also one of the top exporting industries. According to International Trade Association(ITA), most of the semiconductors(over 82%) consist of direct US exports and sales by US-owned subsidiaries overseas and take into account US-based R&D, creation of intellectual property(IP), design, and other high-value-added work. While the region occupies a share of around 22% in the overall semiconductor market, it has over 10% share in the discrete semiconductor market, according to World Semiconductor Trade Statistics (WSTS) organization.
  • The recent outbreak of COVID-19 has led to factory shutdowns. China consumes around 40-50% of global semiconductor output for both domestic consumption and assembly bound for export. Hence, semiconductor firms in the US have high revenue exposure to China. And factory shutdowns or underutilization of production facilities could lead to order cuts and, in turn, fewer or delayed sales. Semiconductor firms with high revenue exposure to Apple, Qualcomm Inc., and Broadcom Inc. would be affected over the near term. Overall, the market for discrete semiconductors in the region is driven by strong electronics and semiconductor companies like Texas instruments, with end-consumers from various industries like consumer electronics automotive parts, among others. Consumer demand across the region also adds to the demand.
  • Smartphones, tablets, and AI-assisted electronics are experiencing high growth in the region. This is expected to influence the growth of the market in the region. According to the US Consumer Technology Sales and Forecast study, conducted by the Consumer Technology Association (CTA), the revenue generated by smartphones was valued at USD 79.1 billion and USD 77.5 billion in 2018 and 2019, respectively. According to Apple, in the second quarter of its 2020 fiscal year, the company generated USD 28.96 billion in revenue from the sales of iPhones.
  • Additionally, due to the COVID-19 pandemic, CTA now sees smartphone sales of 138 million to 153 million units, a year-over-year decline of between 6% and 15%. In January 2020, CTA had forecast sales of 166 million units, which would have been an increase of 2%. Smartphone transmission speeds are increasing dramatically, and the world is witnessing a transition from 4G to 5G. The increased transmission speeds may lead to an increase in the volume of data being transmitted. This is expected to fuel the need for more data centers. Hence, there would be a higher demand for discrete components, which save on both energy and space.

Competitive Landscape

The global discrete semiconductor market is highly fragmented, with numerous semiconductor manufacturers providing the product. The companies are continuously investing in the product and technology to promote sustainable environmental growth and prevent environmental hazards. The companies are also acquiring other companies that specifically deal with these products to boost the market share. Some of the recent developments in the market are:

  • January 2022 - Vishay Intertechnology Inc. introduced two new n-channel TrenchFET MOSFETs: 60 V SiJH600E and 80 V SiJH800E. These increase power density, efficiency, and board-level reliability in telecom and industrial applications by combining ultra-low on-resistance with a high-temperature operation to +175 °C and high continuous drain current handling.
  • July 2021 - Nexperiaannounced the launch of nine new power bipolar transistors, extending its portfolio of products in the thermally and electrically advantageous DPAK package to cover applications from 2 A to 8 A and from 45 V up to 100 V. The latest MJD series parts are pin-to-pin compatible with other MJD devices in DPAK-package, and they also offer significant reliability benefits. The bipolar transistors are suitable for a wide range of applications such as LED automotive lighting, linear voltage regulators, backlight dimming in LCD displays, relay replacement, motor drives, and MOSFET drivers.
  • March 2021 - The 650 V CoolSiC Hybrid Discrete for Automotive from Infineon Technologies AG has been released. A 50 A TRENCHSTOP 5 fast-switching IGBT and a CoolSiC Schottky diode are used in the device to provide a cost-effective performance enhancement while maintaining high reliability. In addition to bi-directional charging, this combination creates the ideal cost-performance trade-off for hard-switching topologies. This makes the device appropriate for high-speed automotive applications such as onboard chargers (OBC), power factor correction (PFC), DC-DC, and DC-AC converters.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
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 Buyers
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 / Supply Chain Analysis
4.4 Assessment of the Impact of COVID-19 on the Market
4.5 Market Drivers
4.5.1 Rising Demand for High-energy and Power-efficient Devices in the Automotive and Electronics Segment
4.5.2 Demand for Green Energy Power Generation Drives
4.6 Market Restraints
4.6.1 Rising Demand for Integrated Circuits
5.1 Construction Type
5.1.1 MOSFET MOSFET - BY MATERIAL Si MOSFET SiC MOSFET MOSFET - BY END USER Consumer Electronics Medical Automotive Computing and Storage Industrial Network and Telecom Other End Users
5.1.2 IGBT - Overview and Market Estimates Automotive Energy (Production and Distribution) Transportation Industrial Commercial Bipolar Transistor Thyristor Rectifier Other Types (Junction Gate Field Effect Transistor (JFET), GaN HEMT, Triacs, Varactor Diodes, TVS Diodes, and Zener Diodes)
5.2 End-user Vertical
5.2.1 Automotive
5.2.2 Consumer Electronics
5.2.3 Communication
5.2.4 Industrial
5.2.5 Other End-user Verticals
5.3 Geography
5.3.1 Americas
5.3.2 Europe
5.3.3 Asia Pacific (China, Japan, Taiwan)
5.3.4 Rest of the World
6.1 Company Profiles
6.1.1 ABB Ltd
6.1.2 On Semiconductor Corporation (Fairchild Semiconductor)
6.1.3 Infineon Technologies AG
6.1.4 STMicroelectronics NV
6.1.5 Toshiba Electronic Devices & Storage Corporation
6.1.6 NXP Semiconductors NV (To be Acquired by Qualcomm)
6.1.7 Diodes Incorporated
6.1.8 Nexperia BV
6.1.9 D3 Semiconductor LLC
6.1.10 Eaton Corporation PLC
6.1.11 Hitachi Ltd
6.1.12 Mitsubishi Electric Corp.
6.1.13 Fuji Electric Corp.
6.1.14 Taiwan Semiconductor Manufacturing Company Ltd
6.1.15 Vishay Intertechnology Inc.
6.1.16 Renesas Electronics Corporation
6.1.17 ROHM Co. Ltd
6.1.18 Microsemi Corporation (Microchip Technology)
6.1.19 Qorvo Inc.
6.1.20 Cree Inc.
6.1.21 General Electric Company
6.1.22 Littelfuse Inc
6.1.23 United Silicon Carbide Inc.

Companies Mentioned

A selection of companies mentioned in this report includes:

  • ABB Ltd
  • On Semiconductor Corporation (Fairchild Semiconductor)
  • Infineon Technologies AG
  • STMicroelectronics NV
  • Toshiba Electronic Devices & Storage Corporation
  • NXP Semiconductors NV (To be Acquired by Qualcomm)
  • Diodes Incorporated
  • Nexperia BV
  • D3 Semiconductor LLC
  • Eaton Corporation PLC
  • Hitachi Ltd
  • Mitsubishi Electric Corp.
  • Fuji Electric Corp.
  • Taiwan Semiconductor Manufacturing Company Ltd
  • Vishay Intertechnology Inc.
  • Renesas Electronics Corporation
  • ROHM Co. Ltd
  • Microsemi Corporation (Microchip Technology)
  • Qorvo Inc.
  • Cree Inc.
  • General Electric Company
  • Littelfuse Inc
  • United Silicon Carbide Inc.