Varactors are operated in a reverse-biased state, so no DC current flows through the device. The amount of reverse bias controls the thickness of the depletion zone and therefore the varactor's junction capacitance. Generally, the depletion region thickness is proportional to the square root of the applied voltage, and capacitance is inversely proportional to the depletion region thickness. Thus, the capacitance is inversely proportional to the square root of applied voltage.
All diodes exhibit this variable junction capacitance, but varactors are manufactured to exploit the effect and increase the capacitance variation.
The figure shows an example of a cross section of a varactor with the depletion layer formed of a p–n junction. This depletion layer can also be made of a MOS or a Schottky diode. This is important in CMOS and MMIC technology.