Taiwan Discrete Semiconductor - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

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).

Key Highlights

• 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

• Power transistors are commonly utilized in high-power amplifiers and power supplies due to their ability to handle high current and voltage levels. They are specifically designed to manage high-power applications and are commonly found in audio and switching circuits.
• Silicon MOSFETs are extensively utilized in various applications, such as power supplies, motor drive circuits, and automobile electrification. They provide benefits such as low on-resistance, high switching speed, and high reliability. Power electronics is one of the main areas where Si MOSFETs are applied. These components are employed in power amplifiers, voltage regulators, motor control circuits, and inverters.
• The country is witnessing notable growth in the renewable energy sector, which is anticipated to influence the demand for power transistors, creating opportunities in the studied market. IGBT power transistors are vital components at the substation level for regulating energy conversion, allowing the grid to adapt voltage and frequency to meet power transmission and distribution needs accurately.
• MOSFETs are essential components in renewable energy systems, as they are utilized in solar inverters, wind turbine control systems, and energy storage systems. Their function is to facilitate efficient power conversion and control, thereby enabling the seamless integration of renewable energy sources into the grid. A silicon carbide (SiC) based MOSFET discrete semiconductor is a specific type of power semiconductor device that uses silicon carbide as the semiconductor material.
• The country has experienced rapid growth in the field of renewable energy. The government actively promotes a free market system for green energy trading to encourage the adoption of clean energy. Taiwan plans to generate 20% of its energy from renewable energy by 2025, thus supporting the market growth.
• IRENA reported that Taiwan's renewable energy capacity hit around 17 gigawatts in 2023, marking a growth of over 27% from the year before and the highest number recorded during the timeframe under review.

Consumer Electronics Segments Holds the Significant Market Share

• The scope of the consumer electronics end-user under the Taiwan discrete semiconductor market covers all different types of consumer electronics where these devices are used, such as smartphones, smart home devices, wearable devices, laptops, and air conditioners, among others. Discrete semiconductors are essential components in consumer electronics, responsible for managing power, processing signals, and protecting devices. These components are vital in various devices, such as power supplies, audio equipment, and mobile phones.
• Discrete semiconductors play a crucial role in maintaining various devices' operational efficiency, speed, and durability in the rapidly evolving consumer electronics industry. They are indispensable for enabling fast data processing, effective power control, accurate voltage stabilization, and advanced touch-sensitive capabilities in items like smartphones, computers, TVs, and household gadgets.
• MOSFETs, for example, are extensively utilized in consumer electronics for tasks like safeguarding against reverse battery polarity, managing power supply from various inputs like AC adapters and batteries, and deactivating unnecessary loads such as backlighting.
• The rising country's demand for consumer electronics such as smartphones, laptops, and computers will support the market growth. According to the Ministry of Economic Affairs, in 2023, the total value of portable computers produced in Taiwan reached almost NTD 67 billion (USD 2.04 billion).

Taiwan Discrete Semiconductor Industry Overview

The Taiwan discrete semiconductor market is fragmented and consists of several players. Companies in the market continuously try to increase their market presence by introducing new products, expanding their operations, or entering into strategic acquisitions and mergers, partnerships, and collaborations. Some of the major vendors include Taiwan Semiconductor Co., Ltd., ABB Ltd., Infineon Technologies AG, NXP Semiconductors NV, Eaton Corporation PLC, and many more.

• In June 2024, Mitsubishi Electric Corporation started shipping its newest products: a 3.3kV/400A and a 3.3kV/200A model of a Schottky barrier diode (SBD) integrated silicon carbide (SiC) metal-oxide-semiconductor field-effect transistor (MOSFET) module. These modules are tailored for heavy-duty industrial applications, such as rolling stock and electric power systems.
• In March 2024, Infineon Technologies AG introduced the OptiMOS 6 200 V MOSFET product line to enhance motor drive applications. This new range is precisely engineered to provide superior performance in various applications, including e-scooters, micro-EVs, and E-forklifts. These MOSFETs' enhanced conduction losses and switching characteristics help minimize electromagnetic interference (EMI) and switching losses.

Additional Benefits:

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

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