Begin: Indian Semiconductor Stocks Surge: What To Know

The region's semiconductor stocks are now regarded as one of the most enticing opportunities for investment. This is primarily due to factors such as the rising need for AI, IoT, EV, and other consumer electronics. India has also set its sights on becoming one of the key players in chip design and fabrication on a global scale, which means Indian semiconductor stocks will receive a strong boost in the future.

This blog delves into the top 5 semiconductor stocks one should have in their investment portfolio and the potential market that exists. We will also take a look at the current semiconductor landscape and analyse if it is indeed the right time to throw in your money.

Why Should One Buy Semiconductor Stocks In India?

The self-reliant narrative and market-favourable policies have opened up great investment opportunities. The government has set aside billions of dollars under the Semicon India Programme with a clear intention of locally manufacturing chips. These policy shifts, aligned with strong demand for electronics, make the semiconductor industry in India a golden investment opportunity.

Key Drivers of Growth:

- The expansion of 5G technology, artificial intelligence, and Internet of Things (IoT) technologies

- Government PLI scheme incentives 

- Substantial demand from both the automotive and industrial sectors 

- The global semiconductor supply shortage is increasing locally manufactured alternatives

Semiconductor Shares to Watch in India

1. Tata Elxsi 

Being at the forefront of the healthcare and automotive industry, Tata Elxsi offers brilliant design and technology services, while also providing semiconductor and embedded systems to the sectors. It remains one of the best semiconductor shares in India owing to its sustained growth and continued innovation.

2. Dixon Technologies 

Dixon is widely known to venture into electronic manufacturing, but also has plans to collaborate with overseas semiconductor companies to begin chip assembly and testing. These are some of the semiconductor-related shares in India that could be followed as the country’s chip assembling market expands.

3. SPEL Semiconductor 

As India’s only homegrown semiconductor packaging company, SPEL Semiconductor is benefiting from government initiatives and rising local demand. It remains one of the prominent semiconductor shares in India to be looked at.

4. ASM Technologies 

This is a small-cap IT service company dealing in product engineering and semiconductor services. Shares of ASM Technologies are considered by many as top semiconductor penny stocks in India, exposing investors to high-risk-high-reward investments.

5. Moschip Technologies 

They are focused on chip design, IoT, and are a fabless semiconductor company. Moschip has been active in the semiconductor industry in India for several years and remains a strong candidate for those looking to invest in Indian semiconductor stocks in the long run.

Top 10 Semiconductor Stocks in India 

Alongside the top five, here are five additional semiconductor stocks that are likely to gain traction among investors in India in 2025: 

Emerging Chip Manufacturing Companies in India Stocks 

• With the Vedanta-Foxconn semiconductor alliance and the entry of the Tata Group into chip manufacturing, along with the projected growth of these semiconductor companies in India, India is making bold strides toward chip fabrication and is expected to play a critical role in reducing reliance on imports.
• Vedanta Ltd: They are venturing into semiconductor and display fabs. 
• Tata Group (via Tata Elxsi & Tata Electronics): They are developing a chip packaging and fabrication ecosystem.
• Investing in these early-stage companies can lead to substantial returns as India builds its manufacturing infrastructure.

Semiconductor stocks to watch in 2025

• In Tata Elxsi innovations with growth potential such as partnerships, it stands out as the best semiconductor stock in India for chip design.
• Centum Electronics and SPEL Semiconductor come out as the most important companies in India for niche aerospace packaging.
• Moschip Technologies is the leader in fabless chip design.
• Vedanta Ltd is the most important player in large-scale semiconductor manufacturing in India.
• These best stocks are well aligned with the country’s roadmap for future semiconductors.
• Risk and Issues

In India, semiconductor stocks are burdened with some risks that this industry also has to deal with:

• The need for fab facilities incurs enormous capital expenditure.
• TSMC and Intel pose established competition on a global scale.
• Dependence on foreign technology hurts.
• Foreign countries make chip fabrication plants take a long time.
• Every investment comes with risk, so investors need to evaluate before putting money into Indian semiconductor stocks.
• Those who aim to penetrate these technologies should put their money in these stocks.
• Chip design, manufacturing, and packaging are services provided by companies classified as semiconductor stocks in India.

Q2. Is it a good time to invest in the semiconductor stocks of India?

Yes, as the global demand shrinks, the government of India policies and spending might positively impact the semiconductor industry, making Indian semiconductor stocks a viable long term investment.

Q3. What are the best semiconductor stocks in India?

Some of the major picks include Tata Elxsi, Moschip Technologies, and SPEL Semiconductor.

Q4. Do you know any semiconductor penny stocks in India?

Some examples in the semiconductor industry include ASM Technologies and Moschip Technologies.

Q5. Which semiconductor companies in India are into chip manufacturing?

Vedanta Ltd, along with the Tata Group, has recently forayed into chip fabrication.

Q6. What are the ways to invest in semiconductor stocks in India?

Any broker or stock trading platform offering a gateway to the Indian equity market would suit investing needs.

Q7. What is the future of semiconductor stocks in India?

The forecast sounds favorable because of the support coming from the Indian government and rising policies for electronic device manufacturing.

Q8. Do any mutual funds invest in semiconductor stocks in India?

Investing in mutual funds that focus on technology tends to include semiconductor businesses.

Q9. Are semiconductor stocks in India good for short-term trading?

Semiconductor stocks are more advantageous for the long term, with the exception of some penny stocks that could provide short term volatility.

Q10. Are semiconductor company stocks available for NRIs’ investment in India?

NRIs can buy these stocks through NRE/NRO accounts with registered brokers.

Conclusion

The semiconductor industry in India is about to undergo a major transformational change. The government’s strong support coupled with rising demand make semiconductor stocks in India a prospective favourite for long-term investors. If you are looking for large-cap reliability or small-cap potential, India's leading semiconductor stocks are abundant.

Monitor the performance of the semiconductor manufacturing companies in India closely and enhance your portfolio with the best semiconductor stocks in India to take advantage of India’s digital future.