Will the price fluctuation of diodes affect the manufacturing cost of communication equipment?

一, Market supply-demand imbalance: the direct driving factor of price fluctuations
1. Transmission effect of raw material costs
The manufacturing of diodes relies on raw materials such as semiconductor silicon wafers and dopants, and their price fluctuations directly affect production costs. Taking 2025 as an example, the global semiconductor silicon wafer market will see a year-on-year increase of 12% -15% in silicon wafer prices due to the surge in demand for electric vehicles, 5G base stations, and other technologies. Taking a certain type of Schottky diode as an example, its raw material cost accounts for 65%. For every 10% increase in silicon wafer prices, the production cost of this type of diode will increase by 6.5%, which will ultimately be transmitted to the procurement cost of communication equipment manufacturers.
2. Dynamic adjustment of supply and demand relationship
The supply and demand relationship in the diode market exhibits significant cyclical characteristics. According to data from July 2025, the delivery cycle index of diodes decreased by 25.9% month on month, and the price index decreased by 0.09% month on month, indicating a trend towards loose market supply. However, on the demand side, the automotive electronics sector saw a 13.8% year-on-year increase in new energy vehicle production, leading to a surge in demand for high reliability diodes and causing some models to rise in price against the trend. For example, a certain brand of transient voltage suppression diode (TVS) has seen an 8% increase in price compared to the same period in 2024 due to strong demand in the automotive industry, directly driving up the manufacturing cost of in vehicle communication modules.
3. Inventory cycle and price fluctuations
The inventory level in the semiconductor industry is an important indicator of price fluctuations. In the second quarter of 2025, the global diode inventory turnover days reached 68 days, an increase of 15 days compared to the same period in 2024. The backlog of inventory has put pressure on prices. Taking the fast recovery diode BYV26E as an example, its price decreased by 20% from 0.65 yuan/PCS in May 2025 to 0.52 yuan/PCS in July. For communication equipment manufacturers with an annual procurement volume of tens of millions, such price fluctuations can directly affect cost expenditures of millions of yuan.
二, Technological iteration acceleration: the deep logic of cost structure reconstruction
1. The technological premium of new diodes
With the development of 5G-A and 6G communication technologies, new devices such as Schottky diodes and silicon carbide (SiC) diodes have become mainstream choices due to their high frequency and low loss characteristics. However, technological iteration brings significant cost differences:
Schottky diode: using a metal semiconductor junction structure, the reverse recovery time is as short as 1-10 ns, but the manufacturing cost is 30% -50% higher than ordinary diodes;
SiC diode: With a voltage resistance of over 1200V, it is suitable for high-voltage direct current transmission scenarios, but the cost per chip is 3-5 times that of silicon-based diodes.
A case study of a 5G base station optical module manufacturer shows that the use of SiC diodes reduces device power consumption by 20%, but increases module costs by 45%, forcing manufacturers to seek a balance between performance and cost.
2. Certification standards and quality costs
Communication equipment has strict requirements for the reliability of diodes and requires international certifications such as AEC-Q102 and GR-468. Taking a certain model of laser diode as an example, its certification cost accounts for 15% of the research and development cost, and it needs to pass a 1000 hour high-temperature accelerated life test, resulting in a 20% lower qualified product rate than consumer grade products. This type of quality cost is ultimately passed on to equipment manufacturers, driving up overall manufacturing costs.
3. Technical threshold for customized requirements
The trend of customized communication equipment is intensifying the cost differentiation of diodes. A certain satellite communication equipment manufacturer customized a dedicated Schottky diode to meet radiation resistance requirements, requiring additional investment in shielding layer design and space environment testing, resulting in a single unit cost 80% higher than standard products. The premium of such technology is particularly significant in the field of high-end communication equipment.
三, Industrial chain collaboration: a breakthrough path for cost control
1. Vertical integration strategy
Top communication equipment manufacturers reduce the risk of diode cost fluctuations through vertical integration. Huawei HiSilicon has reduced the proportion of external procurement costs from 65% to 40% by building its own diode packaging production line, while reducing the unit price of silicon wafers by 12% through large-scale procurement. Data from 2025 shows that the procurement cost of diodes for vertically integrated enterprises is 18% -22% lower than the industry average.
2. Diversified supply chain layout
Geopolitical conflicts and trade barriers exacerbate supply chain risks, prompting companies to build diversified procurement systems. A global communication equipment giant will expand its diode suppliers from 3 to 8 by 2025, covering the three major regions of China, Southeast Asia, and Europe, reducing tariffs and logistics costs through regional supply. Data shows that a diversified supply chain increases a company's ability to cope with price fluctuations by 35%.
3. Digital Cost Management System
AI and big data technology assist enterprises in achieving dynamic cost optimization. A 5G base station manufacturer has deployed a supply chain digital twin system to monitor 12 indicators including diode prices, inventory, and delivery cycles in real-time, and predict price fluctuations through intelligent algorithms. In the second quarter of 2025, the system helped companies secure low-priced silicon wafer procurement contracts three months in advance, saving over 20 million yuan in costs.
四, Future Trends: Cost Game and Value Restructuring
1. Breakthrough in cost reduction space with new materials
The manufacturing cost of wide bandgap semiconductor materials such as silicon carbide (SiC) and gallium nitride (GaN) continues to decline. According to data from 2025, the cost of SiC diodes has decreased by 55% compared to 2020, and it is expected to achieve cost parity with silicon-based devices by 2028. The material revolution will reshape the cost structure of communication equipment and drive the penetration rate of the high-end market to 40%.
2. Green manufacturing drives cost transformation
Global energy conservation and emission reduction policies promote the transformation of diode manufacturing towards low-carbon. The EU's Electronic Waste Regulation requires all communication device diodes to meet carbon footprint traceability standards from 2027 onwards, which is expected to increase manufacturer certification costs by 10% -15%. However, green manufacturing also brings new opportunities. A certain company has reduced the cost of silicon wafers by 8% by using recycled silicon materials, while meeting environmental requirements.
3. Cost efficiency of intelligent production reconstruction
Industry 4.0 technology empowers the intelligent upgrading of diode manufacturing. A certain international giant has reduced the defect rate of diodes from 0.3% to 0.05% and increased single line production capacity by 40% by deploying an AI visual inspection system. Intelligent production enables enterprises to maintain quality while diluting costs through economies of scale, providing more competitive quotes for communication equipment manufacturers.