Overview of Top Semiconductor Stocks in India in 2025
To help you get started, we have listed semiconductor companies offering mid or small-cap stocks, which can be added to your watchlist. From partnerships with international players to an impressive roster of services, each of these companies has its own merits.
1. Tata Elxsi
Besides its formidable presence in industries like auto, healthcare, media, and communications, Tata Elxsi is also a prominent player in India’s semiconductor industry. Boasting innovation in electric vehicles and semiconductor design, this multinational enterprise intends to unleash technological transformation of scale using its strategic collaborations and expertise spanning across domains.
2. ASM Technologies
Offering a sweeping range of engineering services, ASM Technologies caters to multiple overseas markets, including Japan, the Middle East, the UK, the US, and Singapore. Automation, robotics, the Internet of Things (IoT), and driver assistance systems are some of its standout offerings. The company also specialises in product research and engineering, consulting, and development solutions.
3. SPEL Semiconductor
This 40-year-old company is recognised as a trusted partner to several semiconductor contract manufacturers. Likewise, SPEL is the only business in the country that runs as a semiconductor IC assembly facility and a testing hub, which earns it extra brownie points among investors.
4. Moschip Technologies
Moschip Technologies renders high-tech solutions for a variety of domains, including auto, aerospace, defence, healthcare, consumer electronics, and telecommunications. A system design and semiconductor provider, it is renowned for services like turnkey ASICs, mixed-signal IP, IoT, semiconductors, and product development.
5. Dixon Technology
A manufacturer of consumer electronics like LED televisions, mobile phones, washers, and CCTVs, Dixon Technology has successfully tapped into the potential of semiconductor dealings in India. It recently bagged a contract with the tech giant Lenovo, securing substantial growth opportunities in the long run.
6. Ruttonsha International Rectifier
One of the oldest power semiconductor producers in India, Ruttonsha International Rectifier is affiliated with the American-based International Rectifier. This 55-year-old brand is the only firm in the private sector that manufactures semiconductor devices right from the diffusion state.
7. Bharat Electronics Limited
Bharat Electronics Limited (BEL) was founded by the Ministry of Defence in 1954 to cater to the needs of the Indian military force. Offering a wide range of products such as naval systems, defence communication devices, land-based radars, and avionics, BEL is now planning to venture into sectors like satellite assembly and integration, medical devices, civil aviation, and more.
8. CG Power and Industrial Solutions Limited
Previously known as Crompton Greaves Limited, CG Power and Industrial Solutions Limited designs and operates in the power systems and industrial systems segments. In the former segment, the company produces transformers, switchgear, and reactors. In the latter, it manufactures power conversion products like drives, stamps, and machinery for railway transportation.
9. Hitachi Energy India Limited
Hitachi Energy Company was established as a public limited company just a few years back and is renowned in the power technology industry for its energy solutions. Its popular offerings include cooling systems, circuit breakers, semiconductors, transformers, generators, and cable accessories. In addition, the company offers supplementary services like electric grid installation, asset maintenance, reparation, and more.
10. V Guard Industries Limited
Based in Kochi, Kerala, V-Guard caters to a wide consumer base with its extensive collection of products, including consumer durables, electricals, and electronics. Some of its popular offerings include agricultural and domestic pumps, cables, distribution boards, solar water heaters, inverter and inverter batteries, mixer grinders, and gas stoves.
11. Havells India Limited
A prominent power distribution solutions provider, Havells India Limited is known worldwide for its fast-moving electrical goods (FMCG), including cables, fans, switches, motors, home appliances, and more. Besides Havells, popular brands like Crabtree, Standard, and Lloyd come under its umbrella.
Factors to consider before investing in semiconductor stocks in India
While the semiconductor ecosystem brims with possibilities, it is still in its nascent stages in the Indian markets. This is why some thorough homework on your part is essential. Here are some key factors that will help you navigate the relatively recent scene of semiconductors, empowering you to invest in the most suitable common stocks.
- Fiscal performance
The first order of business should be to meticulously study the company’s overall financial health, which encompasses its revenue, profits, debt, and past achievements. Look for organisations that have a solid ROIC (Return on Invested Capital), a metric that essentially exhibits a company’s ability to earn profits from the debt or equity raised.
- Technological prowess
A semiconductor company is a technological entity. But ensure that the one you are investing in is generous enough with its R&D funding. You would want to own equity in an organisation that has the means to consistently invest in innovation so that it comes out on top each time a new breakthrough emerges.
- Market conditions
While the government diligently works to help the semiconductor domain find its foothold in India, uncontrollable factors, including industry trends, geopolitical caveats, or disruptions in the global demand and supply cycle, are assumed to influence the performance of the stocks. By monitoring these elements on a regular basis, you can safeguard your positions and stay ahead of the curve.
- Hard evidence
The market reach and potential make semiconductors highly appealing. Nevertheless, any impulsive buying behaviour should be avoided by exercising due diligence and avoiding hearsay. To bolster your stance, you can hire a financial advisor to help dispel any misinformation and give you a customised and fair analysis of the rewards and risks involved.
Why invest in semiconductor stocks?
- It is a great time to purchase semiconductor stocks. India is undergoing a rapid digital transformation thanks to industry-wide investment in emerging technologies like 5G networks and artificial intelligence, which provides major opportunities for innovation and expansion.
- The rising demand for electronic products among the general public positively affects semiconductor production and distribution, making semiconductor stocks a potentially high-performing asset.
- The Indian government is encouraging semiconductor manufacturing with generous budget allocations and multiple incentivisation programs, which will help drive startup participation of scale.
- Investing in semiconductor stocks will allow Indian investors to effectively diversify their portfolios, making their investment strategy more resilient and robust.
- Semiconductor stocks are directly linked with global advancements and trends, which makes them dynamic assets.
Relevant Union Budget 2025-26 Implications on the Semiconductor Industry in India
The government has set aside ₹70 billion to boost the semiconductor industry. The budget for the scheme to set up chip-making factories (fabs) went up by 56%, from ₹25 billion last year to ₹39 billion now. Also, the money to help build these factories in India has doubled—from ₹12 billion to ₹24.99 billion. This shows a big push to support chip manufacturing in the country.
Benefits of investing in semiconductor stocks
- Significant growth potential: The ongoing expansion of digitization, automation, and robotics presents substantial opportunities for profit within the semiconductor sector.
- Projected future growth: Semiconductor demand is anticipated to remain robust as the market evolves and technological advancements continue to reshape our lifestyles and work habits. The semiconductor industry is widely recognized as a promising long-term investment avenue.
- Government support: The government has implemented various initiatives to foster domestic semiconductor manufacturing, such as the Production-Linked Incentive (PLI) scheme. These measures are expected to encourage increased domestic production within the sector.
How to choose a good semiconductor stocks in India to invest in?
If you are planning to purchase semiconductor stocks in India, scrutinise the factors below to make the right investment choices.
- Financial Strength: Stable revenues, healthy margins, and controlled leverage signal the financial ability to fund growth and weather downturns.
- Technological Edge: High R&D investment and regular commercialisation of advanced chip designs help companies stay ahead in a fast-paced sector.
- Market Awareness: Success is closely linked to global demand trends, geopolitical shifts, and emerging technologies impacting chip supply chains.
- Sub-sector Diversification: Involvement across memory, logic, foundry, and design services cushions companies against volatility in specific segments.
- Valuation Signals: Metrics like price-to-earnings and dividend yields offer insight into pricing versus profitability, though they reflect past performance.
- Regulatory Context: Domestic policies and global trade rules influence production costs and market access for Indian semiconductor firms.
Features of the semiconductor sector stocks in India
While browsing semiconductor stocks in India, it is important that you understand the following features of the these companies. This will help you make wise and well-informed investment decisions.
- Continuous Innovation: Leading players, including select penny stocks, invest heavily in R&D to stay aligned with rapid tech cycles.
- Global Footprint: Diverse international clientele helps reduce dependence on any one market or region.
- Robust Financials: Steady cash flows, low debt levels, and profitability contribute to operational stability over the long term.
- Strategic Alliances: Collaborations with OEMs, equipment suppliers, and cloud firms enhance competitiveness and speed up product launches.
- Resilient Supply Chains: Broad supplier and logistics networks reduce production risks and ensure reliable fulfilment of demand.
Risks Associated with Investing in Semiconductor Shares
- Volatility: Indian semiconductor stocks can be highly volatile due to shifting demand, tech disruptions, and broader market movements, making returns unpredictable.
- Competition: Intense competition among domestic players may trigger pricing pressure and margin reduction, affecting stock performance.
- Cyclical Nature: The semiconductor sector is inherently cyclical, often alternating between growth booms and demand slowdowns.
Conclusion
With the digitalisation of our everyday lives, it is undoubtedly an exciting time to invest in semiconductor stocks in India. They can advantageously diversify your portfolio and can offer you sizable long-term returns. While the fascination with semiconductors is understandable, technology is also vulnerable to the dynamic effects of regulation, politics, culture, and competition. So rely on robust facts and solid advice, and keep an eye out for trends and fluctuations to ensure your investment in semiconductors works in your favour.
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