India has a semiconductor tale to tell. India’s understated conviction in realizing a semiconductor manufacturing hub is a massive step towards an Atmanirbhar nation. India has been synonymous with IT services and software for decades, but now the focus is on something much more important: designing and making chips, creating exciting opportunities for investors looking at the semiconductor stocks in India.
If you’re an investor or just interested in the future of technology in India, this is a space to watch. The growth of the semiconductor stocks in India could be the next big step forward for the country’s economy and lead to exciting new opportunities in semiconductor stocks.
What is a Semiconductor?
Let’s understand what it means.
Semiconductors are materials that can conduct electricity with more efficiency than a conductor like copper but less so than an insulator like rubber. You could call it the “middle ground” for how electricity flows. Without them, your phone, laptop, car, or even your washing machine would not function. The main element is silicon. Engineers can manipulate silicon physically or chemically (called doping, appropriately). As we said, semiconductors create processors, memory cards, and several other electronic devices.
Why Are Semiconductors So Important?
You can see semiconductors everywhere. Your smart TV and refrigerator are made from chips. None of them works in spacecraft and security systems without it.
Let us tell you what its importance is:
- Ubiquity: They are on your phone, car, smartwatch, and even in traffic lights.
- National security: Nations require national semiconductor manufacturing for military purposes and assured dialogue.
- Economic power: A strong semiconductor industry signifies the presence of more high-technology jobs, less imported art, and better control over important technical supply chains.
India Semiconductor Industry: The Surge Towards Global Leadership
For decades, India was behind in semiconductors. But this is changing quickly. The Indian government has strengthened significantly with the global shift in supply chain (especially after the pandemic) and increased chip demand.
Moreover, its main objective is to create a whole ecosystem in India so that it is placed on the global semiconductor map.
Key Government Moves:
- India Semiconductor Mission (ISM): A daring initiative to promote chip production and exhibit fabs in India.
- PLI Scheme: The manufacturer-manufactured linked incentive scheme provides economic support to those players in India.
- Significant investment: Indian and international stakeholders have committed approximately ₹ 1.26 lakh crores ($15 billion).
Semiconductor Developments for India:
Take a look at the recent developments made by the government that contribute directly to the semiconductor industry in India.
- In 2025, India’s first homemade semiconductor chipset will be completed.
- Massive centers such as Dholera in Gujarat and Yida in Uttar Pradesh are developing infrastructure for the world.
- Text: Industry events like Semicon India create buzz, attracting global talent and investors.
Demand and Growth Projections
India’s chip market is currently about $ 41.2 billion. And it does not decrease quickly. Industrial experts expect an annual growth rate of almost 19%, with the market possibly crossing $ 100 billion by 2030.
- The explosion of smartphones, electric vehicles (EVs), and 5G.
- Massive growth in data centers, telecom, renewable energy, and AI.
- A digital economy that’s expanding faster than ever before.
Key Semiconductor Stocks in India Leading the Charge
India’s semiconductor desire is not only approximately constructing factories. It’s approximately developing a fully-fledged environment, from R&D to setup and testing, to set up in semiconductor companies in India. Here are some predominant semiconductor organizations in India that play essential roles:
Leading semiconductor companies:
1. Tata Elxsi
This is done by Tata Electronics, a private company owned by Tata Sons, involved in semiconductor manufacturing, including assembly, testing, and design services. What they deal in big, they built a mega chip production facility in Dholera with Powerchip Semiconductor (Taiwan).
- Investment: Around ₹910 billion (~$11 billion).
- Focus: Chips for AI, automotive, and high-performance computing.
If you want to invest in Tata India semiconductor stock, go for Tata Elxsi; your long-term investment align with India’s development.
2. HCL Technologies & Foxconn JV
- Location: YEIDA, Uttar Pradesh.
- Specialty: Display driver chips and advanced packaging.
- Investment: ₹37 billion+
Vedanta Limited’s objective is to create the first commercial metal workshop in India for chips used in consumer electronics, telecom, and automobiles.
- Partners: Collaborating with global chip experts.
4. Bharat Electronics Limited (BEL)
- Strength: Indigenous chip design for defense, aerospace, and high-reliability sectors.
5. Micron Technology
- Micron Technology’s main role is the establishment of advanced chip testing and packaging units with Indian partners.
6. CG Power & Industrial Solutions
- Focus: Collaborating to establish OSAT (Outsourced Semiconductor Assembly and Testing) facilities.
7. Others to Watch:
Dixon Technologies: Leading OEM with plans to enter chip assembly. Polycab India, ABB India, and Spel Semiconductor are important for building the infrastructure for chip manufacturing by providing automation equipment.
Tata Elxsi and Havells India are collaborating to build embedded systems designs and research together. They review Tata Elxsi’s embedded engineering services and Havells India’s consumer products for emerging opportunities that support their goal of developing smart electronics. These semiconductor companies are among the leaders in India participating in the semiconductor industry.
Time to Summarize!
Following developments in the sector’s top semiconductor stocks, as well as in the infrastructure and innovation companies, will be crucial for investors and the business world. With India set to become a global semiconductor manufacturing hub, investors will have to find ways to capitalize on the opportunity. To make the most of this growth, invest in the right semiconductor stocks at the right time with Jarvis Invest, one of the best stock market advisor in India. Sign up now and start building your stock portfolio today.
Frequently Asked Questions
Here are some additional questions for better clarity.
Q1: What is a semiconductor, and why is it important?
Ans. We all know that the vital part of a semiconductor is silicon, which allows it to conduct electricity. Its significance stems from the fact that it serves as a precursor to the modern world’s factory robots and smartphone chips, and processors, making the devices powered by them functional.
Q2: What are the government initiatives supporting and boosting the semiconductor business in India?
Ans. The ISM (India Semiconductor Mission), the PLI (Production Linked Incentive Scheme), and the large direct investment and subsidies are the government-sponsored foundational initiatives to promote international collaboration and local efforts.
Q3: What are the important developments that investors should track in the semiconductor space in India?
Ans. Investors should track developments like expansions or increases in fab and ATMP chip plants, demand from automotive and electronics sectors, R&D developments, government policy, and international competition in semiconductor stocks.
Q4: Which semiconductor manufacturer is expanding the fastest?
Ans. Broadcom Inc. (AVGO) is the semiconductor stock with the greatest one-year return, up 81.67%.
Q5: What five semiconductor stocks stand to benefit from the high demand for AI chips?
Ans. Nvidia, Advanced Micro Devices, Broadcom, Marvell Technology, and Taiwan Semiconductor Manufacturing are among the five top AI chip makers to invest in 2025. If you’re looking for the right stock to invest in, take a look at the Jarvis One Stock product that will help you find and invest best long-term stocks.
