Traditional discrete devices are gradually being replaced by integrated circuits and other higher functionality components. This transition threatens the viability of traditional discrete products over the long run. Additionally, geopolitical tensions have disrupted supply chains and trade relations, making it tougher for discrete suppliers to access key resources and markets. Rising development and manufacturing costs also put pressure on profit margins.
Market Opportunities: Expansion into Emerging Applications
Growing demand for applications like renewable energy, electric vehicles, 5G infrastructure, and internet of things have opened up new domains for discrete semiconductors. Suppliers can develop customized discrete components tailored for these emerging sectors. Additionally, gaps remain for discrete solutions in harsh environments and applications requiring high reliability. Discrete players are innovating to address needs not met by integrated solutions.
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