During the formation of a p-n junction:
- Electrons from the n-type side (where they are the majority carriers) diffuse into the p-type side (where holes are the majority carriers), creating a region near the junction where there are no free charge carriers. This is called the depletion region.
- In the p-type material, the holes move towards the n-side, and in the n-type material, the electrons move towards the p-side. These movements of charge carriers leave behind ionized donor ions on the p-side and ionized acceptor ions on the n-side. This results in the formation of the space charge region.
Therefore, the correct answer is:
\[
\boxed{\text{E) The space charge region on either side of the junction is called depletion region}}
\]