India’s semiconductor industry is entering a defining era. Semiconductors power virtually every electronic device we use, from smartphones to electric vehicles. With global supply disruptions and expanding technological demand, India is working to become a self-sufficient hub for chip design and manufacturing.
Supported by government initiatives, increasing private investments, and rising exports, several Indian companies are now making significant progress in semiconductor design, testing, and manufacturing. This detailed guide explores the best semiconductor manufacturing stocks in India and the long-term potential of this strategic industry.
Understanding the Semiconductor Industry
Semiconductors are materials that conduct electricity under certain conditions and form the core components of integrated circuits (ICs). These ICs are used in computers, automobiles, telecommunications, consumer electronics, and industrial machines.
The global semiconductor market is valued at around USD 570 billion and expected to exceed USD 1 trillion by 2030. The industry operates through multiple stages:
- Chip design
- Fabrication (manufacturing)
- Assembly, testing, and packaging (ATP)
India is currently strong in design and back-end services rather than fabrication. Still, with increasing investments and partnerships, India is preparing to establish commercial-scale manufacturing capacity in the near future.
Check out Best AI Stocks to Buy in India for Long-Term Investment
India’s Semiconductor Landscape in 2025
India’s semiconductor ecosystem has gained unprecedented momentum through government programs such as:
- India Semiconductor Mission (ISM): Aimed at attracting major chip manufacturers with fiscal incentives.
- Production Linked Incentive (PLI) Scheme: Encouraging domestic production of electronics and semiconductors.
- Design Linked Incentive (DLI): Supporting startups and MSMEs engaged in semiconductor design.
In 2025, large-scale projects like Micron’s assembly and testing facility in Gujarat and Tata Electronics’ fabrication ventures are turning India into a critical node of the global supply chain.
Rising demand from 5G, electric vehicles, and smart appliances further accelerates this transformation.
Criteria for Selecting Semiconductor Stocks
Investors evaluating semiconductor-related stocks should focus on the following factors:
- Core involvement in semiconductor design, fabrication, or assembly
- Financial performance, profit margins, and scalability
- Strategic alliances with global chipmakers or technology partners
- Access to PLI and ISM benefits
- Contribution to high-demand sectors like EVs, AI, telecommunications, and IoT
These parameters help identify companies that are directly or indirectly positioned to benefit from India’s semiconductor growth.
Check out Top 5 Best Midcap Mutual Funds to Invest in India for the Next 10 Years
Top Semiconductor Manufacturing and Related Stocks in India
1. Tata Elxsi Ltd.
Tata Elxsi is a leading technology and design services company specializing in semiconductor design, embedded systems, and automotive electronics. With strong capabilities in chip architecture and testing, it serves global clients in automotive, telecom, and healthcare.
Its focus on innovation and consistent profitability make it one of the most stable technology companies in India’s semiconductor ecosystem.
2. Dixon Technologies
Dixon Technologies is India’s largest electronics manufacturing services (EMS) company. It has expanded into semiconductor packaging and printed circuit board assembly. By aligning with government PLI schemes, Dixon is entering the component manufacturing segment essential for chip production.
Dixon’s strong partnerships, diversified product base, and efficient manufacturing make it a solid long-term play for investors.
3. Moschip Technologies
Moschip Technologies is India’s pioneer in fabless semiconductor design. The company develops ASICs (application-specific integrated circuits), IoT chips, and embedded systems across multiple industries.
With deep expertise in integrated design and engineering services, Moschip is well-positioned to benefit from domestic and global expansion in semiconductor innovation. It represents one of the truest semiconductor plays currently listed in India.
Note: Just to let you know that I personally invested in Moschip technologies.
4. ASM Technologies
ASM Technologies provides engineering and product development services, including semiconductor and VLSI design. It partners with global companies to design semiconductor tools, equipment, and manufacturing systems.
As India scales up domestic semiconductor capabilities, ASM’s expertise in design and automation support services offers promising growth potential.
5. SPEL Semiconductor Ltd.
SPEL Semiconductor is India’s first and only listed pure-play semiconductor packaging and testing company. Operating from Chennai, it provides end-to-end assembly and testing services for global chipmakers.
With domestic chip fabrication projects gaining speed, SPEL is poised to be a beneficiary in India’s post-fabrication value chain, particularly as import substitution becomes a national priority.
6. Vedanta Ltd. (Vedanta-Foxconn JV)
Vedanta, in partnership with Foxconn, aims to establish India’s first semiconductor fabrication facility. While the project has undergone restructuring, the focus remains on long-term semiconductor independence.
Vedanta’s deep industrial experience, strong financials, and access to global technology make it a strategic player in India’s semiconductor roadmap. The project’s success could strongly influence the country’s manufacturing capacity.
Check out 7 Data Center Stocks in Indian Stock Market for the Long Term
Emerging Players and Private Companies to Watch
Apart from listed firms, several private or future-IPO candidates are shaping India’s semiconductor landscape:
- Tata Electronics: Developing a fabrication unit in Tamil Nadu.
- Polymatech Electronics: India’s dedicated opto-semiconductor manufacturer producing chips used in LEDs and communication devices.
- Saankhya Labs (acquired by HCL Technologies): Focused on semiconductor chipsets for broadcasting, defense, and AI applications.
These companies may become public in the future as India’s semiconductor value chain matures.
Global Partnerships and India’s Strategic Advantage
India’s semiconductor progress is heavily supported by international collaborations. Micron’s USD 2.75 billion plant, U.S.–India technology pacts, and Japan’s cooperation reflect global confidence in India’s potential.
Key advantages boosting India’s role include:
- Availability of skilled engineers and chip designers
- Cost-effective manufacturing environment
- Proactive government incentives and stable regulations
- Growing domestic consumption driving steady chip demand
Together, these factors create an attractive long-term foundation for global and domestic investors.
Check out Can I Hold Senores Pharmaceuticals Ltd Stock for Long Term?
Risks and Challenges for Investors
Investors must consider several challenges before entering the semiconductor sector:
- High initial investment required for fabrication plants
- Dependence on imported raw materials and machinery
- Global semiconductor demand cycles causing fluctuations
- Execution risks and regulatory delays in large projects
- Competition from established Asian chip hubs like Taiwan and South Korea
While short-term volatility is inevitable, investors with a long-term perspective can benefit as India gradually strengthens its semiconductor infrastructure.
Check out Best Small Cap Manufacturing Stocks in India
Future Outlook for India’s Semiconductor Industry
India’s semiconductor market is projected to surpass USD 80 billion by 2028. The convergence of 5G, IoT, electric vehicles, and artificial intelligence is propelling continuous chip demand.
Government efforts to build a semiconductor supply chain—from design to testing—are laying a foundation for sustainable growth. As India progresses in establishing fabs and packaging plants, companies across the value chain will enjoy multi-decade opportunities.
For investors, this sector represents a combination of innovation, infrastructure, and deep technology—all positioned for exponential expansion.
Check out 10 Best Energy Stocks with High Dividends in India
FAQs on Semiconductor Stocks in India
1. Are there any pure semiconductor manufacturing companies listed in India?
Currently, India does not have a large-scale chip fabrication company listed. However, SPEL Semiconductor is a pure-play testing and packaging company. Other players like Moschip and Tata Elxsi focus on chip design and embedded systems.
2. What is driving India’s semiconductor industry growth?
Rising demand for electronics, EVs, 5G connectivity, and government-led incentives such as the India Semiconductor Mission and PLI schemes are fueling growth.
3. Are semiconductor stocks suitable for long-term investment?
Yes, semiconductor-related stocks are ideal for long-term investors. The sector’s high entry barriers, technological relevance, and strong government backing create a favorable environment for steady appreciation.
4. How can investors gain exposure to India’s semiconductor sector?
Investors can buy shares of listed semiconductor-related companies or invest in technology-focused mutual funds and ETFs that include semiconductor exposure.
5. Will India become a global semiconductor hub?
By 2030, India could establish itself as a major design and testing hub, with fabrication capacity gradually developing. Partnerships with companies like Micron, Foxconn, and TSMC will be crucial for this transition.
6. What risks should investors watch out for?
Delays in fab construction, heavy capital requirements, and supply chain inefficiencies are major challenges. Investors should adopt a long-term approach and diversify across the technology sector.
Conclusion
India’s semiconductor revolution is just beginning, powered by government initiatives, global collaborations, and domestic innovation. Companies like Tata Elxsi, Dixon Technologies, Moschip, ASM Technologies, SPEL Semiconductor, and Vedanta are leading the movement toward chip self-reliance.
Investing early in the semiconductor theme can provide significant long-term rewards, especially as India transitions from an importer to a producer of critical electronic components.
Patience, diversification, and awareness of global market cycles will be key for investors seeking to capitalize on this transformative industry.
You may also like:
- 10 Best Healthcare Stocks for a Long-Term Portfolio
- Can Pradeep Metals Ltd Share Become a Multibagger
I am an IT professional with more than 17 years of experience in the industry. Over the past five years, I have developed a strong interest in the stock market, investing in both direct stocks and mutual funds. My background in IT has helped me analyze and understand market trends with a logical approach. Now, I want to share my knowledge and firsthand experiences to help others on their investment journey. Read more about us >>