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.
First Published: May 20, 2025, 13:00
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