Semiconductor diode lasers use a PN junction made of materials like gallium arsenide as the active medium. When forward biased, the PN junction achieves population inversion allowing for stimulated emission of coherent light. Semiconductor lasers come in homojunction and heterojunction types depending on whether the P and N materials are the same or different. They are compact, efficient, and commonly used in applications like CD/DVD players, fiber optic communications, and laser printing.