South Korea Discrete Semiconductors - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

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).

Key Highlights

• 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.

Additional Benefits:

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

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