A P-N junction diode is formed by placing a P-type semiconductor next to an N-type semiconductor, creating a junction. When the junction forms, electrons diffuse from the N to the P side and holes diffuse from the P to the N side, creating a depletion region devoid of charge carriers. A P-N junction diode conducts electricity easily in the forward bias direction but blocks current in the reverse bias direction, acting as an ideal conductor or insulator respectively. Important parameters for using P-N junction diodes in circuits are the forward voltage drop, reverse breakdown voltage, and maximum operating temperature.