India has very few listed semiconductor manufacturing companies, because the biggest approved chip projects belong to unlisted firms such as Tata Electronics or to foreign companies such as Micron. The listed semiconductor stocks in India are mostly companies with a chip packaging unit, a chip design business or an equipment link, and for several of them chips are still a small slice of revenue.
This article explains the India Semiconductor Mission and where each approved project stands as of October 2026. It then profiles eight listed companies worth researching, says plainly which are pure plays and which have small exposure, and closes with a comparison table, the valuation risk in numbers and a checklist. This is educational material, not a recommendation to buy or sell any security.
The policy push: ISM 1.0 and Semicon 2.0
The India Semiconductor Mission (ISM) was launched in December 2021 with an outlay of ₹76,000 crore. It offers fiscal support of up to half the project cost for chip fabs, display fabs and packaging units, and many states add their own subsidies on top.
By July 2026 the first phase had approved 12 manufacturing units with cumulative investment of over ₹1.64 lakh crore: one silicon fab, one silicon carbide fab, one gallium nitride micro-LED display fab and nine packaging units. Packaging units are called ATMP (assembly, testing, marking and packaging) or OSAT (outsourced semiconductor assembly and test). They take finished silicon wafers and turn them into usable chips.
On 15 July 2026 the Union Cabinet approved Semicon 2.0 with an outlay of ₹1,27,500 crore. According to the government’s release, it rests on six pillars: chip design and IP, machines and materials (including chemicals and gases), more fabs, advanced packaging, research and talent. The government expects it to attract about ₹4 lakh crore of investment. Some early media reports put the outlay at ₹1.25 lakh crore; the official figure is ₹1,27,500 crore.
Approved projects and their status (October 2026)
Five packaging units were in commercial production by September 2026: Micron, Kaynes and CG Semi in Sanand, Gujarat, plus CDIL in Mohali and Suchi Semicon in Surat, whose lines were inaugurated on 17 September 2026. The first fab is scheduled to be commissioned in 2028.
| Project | Type, location | Approved cost (₹ crore) | Status, Oct 2026 | Listed in India? |
|---|---|---|---|---|
| Tata Electronics with PSMC (Taiwan) | Silicon fab, Dholera, Gujarat | 91,000 | Under construction; commissioning scheduled for 2028 | No |
| Tata Semiconductor Assembly and Test | OSAT, Jagiroad, Assam | 27,000 | Trial runs; production expected around the turn of the year | No |
| Micron Technology | ATMP (memory), Sanand | 22,516 | Commercial production since February 2026 | No (US-listed) |
| CG Semi (CG Power with Renesas and Stars) | OSAT, Sanand | 7,600 | Commercial production since July 2026 | Yes, via CG Power |
| HCL group and Foxconn (India Chip) | OSAT for display driver chips, Jewar, UP | 3,706 | Foundation stone laid February 2026; operations targeted for 2027 | No |
| Kaynes Semicon | OSAT, Sanand | 3,307 | Commercial production since March 2026 | Yes, via Kaynes Technology |
| Crystal Matrix | GaN micro-LED display fab, Gujarat | 3,068 | Approved May 2026 | No |
| SiCSem, CDIL, 3D Glass Solutions, ASIP | SiC fab (Odisha) and three packaging units | 4,594 (combined) | CDIL in production; others under construction | SiCSem via Archean Chemical |
| Suchi Semicon | OSAT, Surat | 868 | Commercial production since September 2026 | No |
Source: PIB and Cabinet approval releases, ism.gov.in, company announcements. The approved costs add up to about ₹1.64 lakh crore. Reports in July 2026 said the Dholera fab will start at mature nodes (55 to 90 nanometres) before moving to 28nm.
The table shows the core problem for stock investors: the three largest projects, worth about ₹1.4 lakh crore together, cannot be bought on Indian exchanges. HCL Technologies, the listed IT company, is also not the HCL partner in the Foxconn venture; that stake is held by an HCL group investment company.
8 semiconductor stocks in India worth researching
Unless stated otherwise, market cap, P/E and ROCE (return on capital employed, operating profit as a share of the money invested in the business) are from Screener.in as of 1 October 2026, and borrowings are as of March 2026. Segment figures come from Q1 FY27 results (April to June 2026). The order is by how direct the chip exposure is, not by preference.
1. CG Power and Industrial Solutions (OSAT, through CG Semi)
CG Power is mainly a maker of transformers, switchgear, motors and railway equipment, owned by the Murugappa group’s Tube Investments. Its subsidiary CG Semi started commercial production at Sanand on 4 July 2026. Market cap is about ₹1,38,484 crore, P/E 109 and ROCE 26.7%, with borrowings of ₹118 crore.
The semiconductor segment earned ₹94 crore in Q1 FY27, under 3% of consolidated revenue of ₹3,281 crore, and lost ₹43 crore at the segment level. Today’s valuation rests mostly on the power equipment business, which we covered in our guide to ancillary power stocks.
2. Kaynes Technology (EMS plus OSAT)
Kaynes is an electronics manufacturing services (EMS) company whose subsidiary Kaynes Semicon began commercial production at Sanand in March 2026. Market cap is about ₹22,849 crore, P/E 65.8 and ROCE 12.7%, with borrowings of ₹913 crore. Q1 FY27 revenue rose 40% to ₹946 crore, but net profit fell to ₹56 crore and operating cash flow was negative.
Management expects OSAT and PCB revenue to start in Q3 FY27 and has guided for about ₹450 crore from the two together in FY27. The share was about 56% below its 52-week high on 1 October 2026 (₹3,399 against ₹7,705), after a December 2025 broker note questioned some FY25 disclosures, which the company disputed, and after margins weakened.
3. MosChip Technologies (chip design services)
MosChip designs chips for clients: turnkey ASICs (custom chips), mixed-signal IP and verification, plus product engineering. Its silicon engineering segment produced ₹97.8 crore of the ₹116.2 crore Q1 FY27 revenue, about 84%, which makes it one of the closest listed things to a pure semiconductor play. It does not make chips itself.
Market cap is about ₹3,865 crore, P/E 121 and ROCE 11.0%, with borrowings of ₹88 crore. Q1 FY27 revenue fell 14% year on year and net profit fell about 78% to ₹2.45 crore, which the company linked to the timing of turnkey project milestones.
4. ASM Technologies (engineering for chip-equipment makers)
ASM provides design, prototyping and contract manufacturing for makers of capital equipment used in semiconductor, solar and display production, such as vacuum chambers and gas-handling systems. Design-led manufacturing made up 73.6% of Q1 FY27 revenue of ₹198.8 crore, which grew 62%. It does not disclose how much of that comes from semiconductor customers alone.
Market cap is about ₹9,633 crore, P/E 132 and ROCE 27.0%, with borrowings of ₹128 crore. The share traded at ₹6,604 on 1 October 2026 against a 52-week low of ₹2,100, so a lot of growth is already priced in.
5. RIR Power Electronics (power semiconductors, SiC plans)
Formerly Ruttonsha International Rectifier, RIR makes diodes, thyristors, rectifiers and power modules, so almost all of its revenue is semiconductor devices. It is also building a silicon carbide (SiC) facility in Odisha, part of a planned ₹618 crore investment, and installed its SiC epitaxial wafer reactors in September 2026; commercial production awaits regulatory formalities.
It is very small. FY26 revenue was ₹90.9 crore and net profit ₹7.9 crore, against a market cap of about ₹1,408 crore and a P/E of 218. ROCE is 7.9% and borrowings ₹14 crore.
6. Archean Chemical Industries (SiC fab, through SiCSem)
Archean’s core business is bromine, industrial salt and sulphate of potash. Its step-down subsidiary SiCSem is building India’s first ISM-approved silicon carbide fab in Odisha, with an estimated cost of ₹2,066.7 crore, and signed its fiscal support agreement with ISM on 11 May 2026. Chip revenue today is nil.
Market cap is about ₹5,865 crore, P/E 60.6 and ROCE 7.4%. Borrowings doubled to ₹466 crore in March 2026 from ₹235 crore a year earlier, while net profit fell from ₹319 crore in FY24 to ₹105 crore in FY26 as the chemicals business weakened.
7. SPEL Semiconductor (legacy OSAT, distressed)
SPEL, based in Chennai, is India’s oldest listed chip assembly and test company, so its name often appears in search results for semiconductor stocks. The business is in distress: revenue was ₹6.3 crore in FY26 and about ₹8 lakh in the June 2026 quarter, factory operations have been suspended, and auditors have flagged material uncertainty about it continuing as a going concern.
Market cap is about ₹576 crore against a book value of about ₹0.66 per share. The board approved a fundraising limit of up to ₹1,000 crore and a partnership with Calsoft in July 2026. Read our note on the reasons to stay away from penny stocks before treating a story like this as an opportunity.
8. Dixon Technologies (EMS, display modules)
Dixon is India’s largest listed EMS company, assembling phones, TVs and appliances. It is not a chipmaker. Its 74%-owned joint venture with China’s HKC got approval in March 2026 to make display modules, and its display subsidiary was approved under the Electronics Component Manufacturing Scheme on 30 March 2026. It is a component and electronics play that benefits from the same ecosystem.
Market cap is about ₹77,687 crore, P/E 41.4 and ROCE 29.2%, with borrowings of ₹994 crore. Operating margins are thin at about 3.6% on trailing revenue of ₹51,585 crore, which is typical of assembly work.
Names often listed that have little chip exposure
Tata Elxsi is a design and technology services firm focused on automotive, media and healthcare clients; it is not part of the Tata Electronics fab. HCL Technologies, as noted, is not the partner in the Foxconn OSAT. Large groups such as L&T have chip-design subsidiaries, but these are tiny next to the parent’s revenue. Owning these shares gives little semiconductor exposure.
Comparison table
| Company | Chip role | Chip share of revenue | Market cap (₹ cr) | P/E | ROCE | Borrowings (₹ cr) |
|---|---|---|---|---|---|---|
| CG Power | OSAT | Under 3% (Q1 FY27) | 1,38,484 | 109 | 26.7% | 118 |
| Dixon Technologies | EMS, display modules | Nil (not a chipmaker) | 77,687 | 41.4 | 29.2% | 994 |
| Kaynes Technology | OSAT, EMS | Not yet booked; FY27 guidance with PCBs about ₹450 cr | 22,849 | 65.8 | 12.7% | 913 |
| ASM Technologies | Equipment engineering | Not disclosed | 9,633 | 132 | 27.0% | 128 |
| Archean Chemical | SiC fab (planned) | Nil | 5,865 | 60.6 | 7.4% | 466 |
| MosChip Technologies | Chip design | About 84% (Q1 FY27) | 3,865 | 121 | 11.0% | 88 |
| RIR Power Electronics | Power devices, SiC | Nearly all | 1,408 | 218 | 7.9% | 14 |
| SPEL Semiconductor | Legacy OSAT | All, but operations suspended | 576 | n/a (losses) | 0.1% | 21 |
Source: Screener.in (market cap, P/E, ROCE as of 1 October 2026; borrowings as of March 2026) and company Q1 FY27 results. Consolidated figures except SPEL (standalone).
The valuation risk, in numbers
The Nifty 50 traded at a P/E of about 19.2 on 1 October 2026. Four of the eight companies above trade at more than 100 times earnings, and RIR at 218. A P/E of 218 means an earnings yield (profit divided by price) of under 0.5%. If the multiple is unfamiliar, start with our guide to the P/E ratio.
The falls have already been large. On 1 October 2026, Kaynes was about 56% below its 52-week high, RIR about 50% below (₹177 against ₹354), SPEL about 43% below (₹125 against ₹221), MosChip about 31% below (₹198 against ₹288) and Dixon about 27% below (₹12,700 against ₹17,505).
Worked example: a theme stock at a P/E of 120
Suppose Meera puts ₹50,000 into a hypothetical chip-design stock trading at a P/E of 120. Its earnings then grow 20% a year for five years, so earnings rise by 1.2 to the power 5, which is about 2.49 times.
- If the P/E stays at 120: the price also rises 2.49 times, so ₹50,000 becomes about ₹1,24,400.
- If the P/E falls to 40 (still about double the Nifty): price multiple = 2.49 × 40 ÷ 120 = 0.83, so ₹50,000 becomes about ₹41,500. Meera loses about ₹8,500 even though profits grew two and a half times.
- To break even at a P/E of 40, earnings must triple (120 ÷ 40 = 3) in five years, which needs growth of about 24.6% a year.
Our article on how to tell if a stock is overvalued covers more checks of this kind.
Other risks specific to chips
- Long gestation: packaging units take two to three years from approval to production, and fabs longer. Losses during ramp-up, like CG Semi’s ₹43 crore in one quarter, are normal.
- Customer concentration: a new OSAT often depends on one or two anchor customers, and a single lost contract can change the picture.
- Timelines slip: the Dholera fab’s first chips were once promised for December 2026; commissioning is now scheduled for 2028.
- Global cycle: memory and chip prices swing sharply, and Indian units compete with established packaging hubs in Malaysia, Taiwan and China.
- Policy dependence: project economics depend on central and state subsidies being paid on time.
These stocks also tend to move together on policy news. Our guide to asset allocation explains how to cap exposure to any single theme.
Checklist for evaluating a semiconductor stock
- Find the chip revenue: look for a separate semiconductor segment in the quarterly results. If there is none, assume exposure is small.
- Check ownership: confirm the listed company actually owns the approved unit, and what percentage.
- Track milestones: approval, fiscal support agreement, construction, trial runs and commercial production. Each stage carries different risk.
- Read the segment profit: a chip unit losing money can pull down a strong parent business.
- Watch cash flow and debt: compare operating cash flow with profit and check whether borrowings are rising faster than revenue.
- Look for anchor customers: named customers and signed volumes matter more than capacity figures.
- Value it honestly: compare the P/E with the company’s own history and the Nifty, and run the worked example with your own growth assumptions.
For smaller listed suppliers in related industries, see our list of small-cap manufacturing stocks.
FAQ
Which is the best semiconductor stock in India?
There is no single answer, and we do not make recommendations. MosChip and RIR Power are the closest to pure plays but are small and expensive. CG Power and Kaynes own operating packaging units, but chips are a small part of their revenue so far.
Is Tata Electronics listed on the stock market?
No. Tata Electronics, which is building the Dholera fab and the Assam OSAT, is an unlisted Tata group company. Owning Tata Elxsi or other listed Tata companies does not give you a share in these projects.
Can I invest in Micron’s Indian plant?
Only by buying Micron Technology shares in the US, since the Sanand plant is owned by the US company and has no Indian listing. That would be a bet on Micron’s global memory business, of which India is a small part.
What is Semicon 2.0?
It is the second phase of the India Semiconductor Mission, approved on 15 July 2026 with an outlay of ₹1,27,500 crore. It adds support for chip design, equipment, materials, chemicals and gases alongside more fabs and packaging units.
When will India make its first chip in a fab?
The government says the first fab, Tata Electronics’ unit at Dholera, is scheduled to be commissioned in 2028. Chips already coming out of Indian plants in 2026 are packaged and tested here, but the wafers are made abroad.
Ramesh Iyer is the pen name of the founder and editor of StocksInfo.AI, an independent investor in Indian equities, mutual funds and ETFs since 2020. Every article is researched from primary sources such as SEBI, AMFI, NSE and the Income Tax Department, and fact-checked before publishing. About us