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List of top semiconductor stocks in India

Are you curious about semiconductor stocks in India? Let's learn about stocks, materials, growth, and how the government is stepping in to amp it up

Published: Jun 24, 2024 10:15:30 AM IST
Updated: Jun 28, 2024 03:10:08 PM IST


The demand for semiconductor stocks in India is tied directly to the diverse usage of semiconductors; a semiconductor is a material that exhibits properties of both insulators and conductors (hence semi, meaning half or partial conductor). It is typically made of silicon, which conducts electricity better than insulators like glass but not as well as pure conductors such as copper or aluminium.

Semis or chips, these tiny components are vital in a variety of products, from computers and smartphones to appliances and medical equipment. They're used in applications like transistors, diodes, and Integrated circuits (ICs), the foundation of modern electronics.

Semiconductors are pivotal components in a wide array of electronic devices, including cloud servers, mobile phones, automotive systems, industrial automation applications and defence. Due to their strategic and economic significance, only a handful of countries have established chip-making capabilities, while others are striving to decrease their reliance on imports and attain self-sufficiency.

Presently, India heavily depends on semiconductor imports, primarily from Taiwan, China, Korea, and Vietnam. However, we are rapidly advancing to establish ourselves as a major player in the global semiconductor industry. The demand for semiconductors in the country is forecasted to surpass $80 billion by 2026 and $110 billion by 2030. This growth in demand has led us to consider whether India can truly establish itself as a semiconductor hub.

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List of semiconductor stocks in India

Here is a list of the top semiconductor stocks in India based on their market capitalisation, with data sourced from NSE India and BSE India as of June 24, 2024.


Company Market Cap (in Rs)
HCL Technologies 3,90,767.77
Bharat Electronics 2,27,041.73
Vedanta 1,72,700.96
Dixon Technologies 69,487.39
Tata Elxsi 45,573.90
Moschip Technologies 5,624.38
MIC Electronics Ltd 1,498.53
ASM Technologies 1,401.27
RIR Power Electronics Ltd1,337.18
Solex Energy Ltd 1,216.00
SPEL Semiconductor Limited 815.36
Surana Telecom and Power Ltd 327.32

Semiconductor materials

The most common semiconductor materials are silicon, germanium, and gallium arsenide. Silicon dominates due to its abundance, high melting point, and efficient production since the 1950s. Gallium arsenide, though less common, is valued for its fast response to electric signals, making it suitable for high-frequency applications like television satellites. However, its production is more complex and involves toxic chemicals.

Here are some of the latest advancements in semiconductor materials:

  1. High-power gallium nitride: It converts power in electric grid systems because of its high critical energy field.
  2. Antimonide-based and bismuthide-based semiconductors: Utilised for improved infrared sensors in the medical and military sectors.
  3. Graphene: Potentially surpassing silicon as a versatile semiconductor material, although widespread commercialisation may take up to twenty-five years.
  4. Pyrite: Pyrite is being explored as a replacement for cadmium telluride in solar cells due to its abundance, low cost, and non-toxic nature.
Semiconductor materials are used to build everyday products and components like bipolar transistors, diodes, field-effect transistors, integrated circuits, LEDs (Light-emitting diodes), MOSFETs (metal–oxide–semiconductor-field-effect transistors), and silicon-controlled rectifiers.

Current state and future of the semiconductor industry in India

India's semiconductor industry has grown steadily since establishing the Semiconductor Complex Limited in Mohali in the 1980s. The COVID-19 pandemic triggered a global chip shortage, emphasising the critical role of semiconductors across industries.

This shortage, expected until early 2024, highlights the need for countries to strengthen domestic semiconductor manufacturing. India, acknowledging the importance of self-reliance, is accelerating efforts to attract global semiconductor leaders and support local production.

The government's efforts have already begun to bear fruit, with several major semiconductor companies announcing investments in India. On March 13, Prime Minister Narendra Modi inaugurated three projects worth Rs1.25 lakh crore, stressing the need to catch up in semiconductor manufacturing.

For example, US-based Micron Technology has signed a Memorandum of Understanding (MoU) with the Gujarat government to establish a $2.75 billion semiconductor manufacturing unit in the state. Similarly, Taiwan's Powerchip Semiconductor Manufacturing Corp (PSMC) has partnered with Tata Electronics to set up a semiconductor fab in Gujarat's Dholera. The first 'Made in India' chip is expected to be available in the market by December 2024, with the Micron plant playing a significant role in this milestone.

The Indian electronics and semiconductor market will grow at a 25 percent CAGR until 2028. This growth is driven by the demand for smaller electronic devices, the rise of the Internet of Things, and the emergence of advanced consumer products.

Government initiatives and policies

The Indian government has launched several initiatives and policies to support the semiconductor industry's growth, including the National Policy on Electronics (NPE), the Production-Linked Incentive (PLI) scheme, and the India Semiconductor Mission.

National Policy on Electronics

The National Policy on Electronics, introduced on February 25, 2019, strives to position India as a leading centre for Electronics System Design and Manufacturing (ESDM). Its goal is to nurture domestic capabilities to produce essential components like chipsets and cultivate an environment where the industry can thrive on a global scale.

It offers several schemes to incentivise investments and promote electronic manufacturing, including PLI (Production Linked Incentive Scheme) for Large-scale Electronics Manufacturing, IT Hardware, and SPECS.

India Semiconductor Mission

The Government has sanctioned the Semicon India program and allocated Rs76,000 crore to enhance the semiconductor and display manufacturing ecosystem.

Schemes under Semicon India:

  1. Scheme for setting up Semiconductor Fabs: Offers financial assistance to establish semiconductor wafer fabrication facilities.
  2. Scheme for setting up Display Fabs: Provides fiscal support for TFT LCD/AMOLED display fabrication facilities. The Scheme offers fiscal support of up to 50 percent of the project cost, capped at Rs12,000 crore per Fab.
  3. Scheme for Compound Semiconductors/Silicon Photonics/Sensors Fab and Semiconductor Assembly, Testing, Marking, and Packaging (ATMP)/OSAT facilities: This scheme supports establishing various semiconductor facilities.
  4. Design-Linked Incentive (DLI) Scheme: This scheme provides financial incentives and design infrastructure support for semiconductor design development and deployment.

Production-Linked Incentive (PLI) scheme

India's 'Atmanirbhar' vision is supported by Production Linked Incentive (PLI) Schemes across 14 sectors, with an outlay of Rs1.97 lakh crore. These schemes aim to attract investments, improve manufacturing capabilities, and increase exports. With the potential to stimulate production, employment, and economic growth, these schemes benefit the MSME (Ministry of Micro, Small and Medium Enterprises) ecosystem.

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