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This lecture covers the formation of a PN junction in semiconductor devices, detailing the diffusion of majority carriers, conduction of minority carriers, density of charges, electric field in the depletion zone, potential barrier, and junction capacitance. It also includes examples to calculate carrier densities and depletion capacitance. The instructor explains the concepts of forward and reverse biasing, the reduction of depletion zone in forward bias, and the structure of a diode. The lecture concludes with the characteristics of the current-voltage curve and the effect of temperature on diode behavior.