The document discusses capacitance in PN junctions. It describes how a depletion layer forms at the PN junction interface when there is no external voltage. When the junction is reverse biased, the depletion layer widens and acts as a dielectric between the P and N regions, forming transition/space charge capacitance. When forward biased, minority carriers are injected, forming diffusion capacitance which is much larger than transition capacitance. Formulas for calculating both capacitances in step-graded and linearly-graded junctions are provided.