China Semiconductor Diode Market

China Semiconductor Diode Market Analysis

The China Semiconductor Diode Market size is estimated at USD 1.33 billion in 2025, and is expected to reach USD 1.58 billion by 2030, at a CAGR of 3.4% during the forecast period (2025-2030).

• Owing to rising awareness, adopting electric vehicles helps reduce emissions, fleet emissions, and stringent government rules and regulations regarding vehicle emissions. Moreover, China's electric light commercial vehicles segment is expected to grow fastest. For instance, in 2022, the total sales of electric vehicles in China reached 6.89 million units. The Chinese government targets 20% of all vehicle sales to be electric by 2025, including adopting NEVs as the next generation of government vehicles.
• Many large electric vehicle manufacturers are investing in establishing plants in the country to manufacture electric automobiles. For example, Tesla constructed a second electric vehicle (EV) facility in China in February 2022 to assist it in meeting rising demand both locally and in export markets. In China, the business raised manufacturing capacity to at least 1 million cars annually.
• The increasing demand for consumer electronics across China pushes numerous corporations to create manufacturing facilities. For instance, according to the most recent figures from the Chinese government, Chinese subscribers are flocking to buy pricey new 5G cell phones. Until July 2022, the number of 5G smartphone shipments in China reached 133.9 million units 5G accounted for 75.9% of the total mobile phone shipments, according to the China Academy of Information and Communications Technology (CAICT) data.
• Vehicles utilize diodes because they allow current flow in only one direction. This critical component protects the vehicle's LED headlamp against current spikes. Hence, the growing demand for smart lighting solutions in China, owing to their energy efficiency, convenience, and cost-saving benefits, will likely drive the market.
• For instance, in February 2023, a large-scale smart infrastructure project was initiated in Huanggang City, China, to save energy costs and emissions while digitalizing urban infrastructure. As part of the project, Signify would provide the city in Hubei Province with light-emitting diode (LED) street lighting, smart poles, and a connected lighting system for industrial parks.

China Semiconductor Diode Market Trends

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.

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.

China Semiconductor Diode Industry Overview

The China Semiconductor Diode Market is highly fragmented and highly competitive, owing to the presence of various small and large players across the country. Key players engage in product innovation, partnerships, mergers, and acquisitions to gain a competitive advantage, among other activities.

• May 2023: Infineon partnered with Chinese SiC suppliers TanKeBlue and SICC. The aim of the partnership is supply chain stability and the growing demand for SiC semiconductor products for automotive, solar, and EV charging applications and energy storage systems in the Chinese market.
• September 2022: GaNo Optoelectronics Inc, a Nanjing University spin-off that provides ultraviolet (UV) detectors and modules based on wide-bandgap semiconductors such as gallium nitride (GaN) and silicon carbide (SiC), has formally released the first commercial SiC-based extreme ultraviolet (EUV) photodiodes.

China Semiconductor Diode Market Leaders

China Semiconductor Diode Market News

February 2023: National Cheng Kung University, China, and Diodes Incorporated Begin Collaboration. Diodes Incorporated and NCKU collaboration aim at brand, talent, and industry-academia. Diodes Incorporated is expected to invest 3 years and more than 10 million NTD in this collaboration.

February 2023: AXT, Inc. expanded its operations in Beijing and invested in raw material extraction facilities, cementing its position as the leading global provider of compound semiconductor substrates.