The varactor diode is a semiconductor device that has a voltage-dependent variable capacitance. It consists of a standard PN junction with a depletion region that acts as a dielectric between the P and N regions, which form the capacitor plates. As the reverse bias voltage is increased, the depletion region width increases, reducing the capacitance according to the formula C∝1/√v. Varactor diodes are used in applications like voltage controlled oscillators, parametric amplifiers, and frequency multipliers that require a voltage-controlled variable capacitance.