Best Semiconductor Stocks in India

The semiconductor industry in India is experiencing rapid expansion due to increasing digital adoption, the rise of AI-driven applications, and the growth of consumer electronics. The Indian government's "Make in India" initiative and the Production Linked Incentive (PLI) scheme have further boosted the sector, attracting foreign investments and encouraging domestic semiconductor manufacturing. In this blog, let’s explore which are the best semiconductor stocks in India and an overview of each stock.

Semiconductor Industry in India - A Brief Overview

India's semiconductor industry is booming, driven by increasing demand for electronic devices, government initiatives, and global shifts in semiconductor manufacturing. According to industry reports, India's semiconductor market is projected to reach $110 billion by 2030, growing at a CAGR of 19% from 2024 to 2025.
The government has announced ₹76,000 crore ($9.2 billion) in incentives to boost domestic semiconductor production, attracting global chipmakers and fostering local manufacturing. Additionally, with the launch of Semicon 2.0, India is focusing on creating a sustainable semiconductor ecosystem, moving up the value chain in chip design, manufacturing, and packaging. This initiative also includes funding for essential equipment, materials, and gases required for semiconductor production, ensuring a robust supply chain.

As a result, semiconductor stocks in India are gaining traction among investors looking for high-growth opportunities. Let’s explore the best semiconductor stocks in India for 2025 based on market capitalisation.

Top Semiconductor Stocks in India (2025) by Market Capitalisation

Here are some of the top semiconductor stocks in India that investors should watch in 2025:

*Market capitalization equals the total number of free float shares * current market price of the stock (Figures as of March 2025).

Overview of Best Semiconductor Stocks in India

Tata Elxsi

Tata Elxsi is a global leader in design and technology services, specialising in product engineering, embedded systems, and digital transformation. It serves industries like automotive, healthcare, and communications, offering cutting-edge solutions in AI, IoT, and semiconductor design.

In 2024, Tata Elxsi reported strong growth, driven by rising demand in the transportation sector. A major European contract has expanded its global footprint. With a focus on electric vehicles and autonomous tech, the company aims to strengthen its semiconductor design and embedded systems capabilities.

Dixon Technologies

Dixon Technologies is a leading Indian electronics manufacturing services (EMS) company, offering design-to-delivery solutions across consumer electronics, appliances, lighting, and mobile devices. It partners with global brands and plays a crucial role in India’s electronics supply chain.

With India’s push for semiconductor self-reliance, Dixon is expanding into component manufacturing and assembly. Strategic partnerships are strengthening its capabilities, positioning it as a key player in India’s growing semiconductor ecosystem.

Syrma SGS Technology

Syrma SGS Technology is an emerging electronics manufacturing services provider, specialising in high-mix, flexible volume production for industrial, automotive, and consumer electronics. Its focus on R&D and precision manufacturing has earned it a strong market presence.

To meet rising semiconductor demand, Syrma is investing in expanding its manufacturing capabilities and exploring collaborations with global semiconductor firms. Government incentives for electronics manufacturing further support its growth trajectory.

MosChip Technologies

MosChip Technologies is a semiconductor design and embedded solutions provider with expertise in chip design, ASIC development, and IoT solutions. It serves sectors like automotive, consumer electronics, and industrial applications.

Recent expansions in North America and strategic acquisitions, like Softnautics Inc, have strengthened its design capabilities. MosChip is also developing smart meter chips under India’s Design Linked Incentive (DLI) scheme, reinforcing its role in semiconductor innovation.

ASM Technologies

ASM Technologies is a global engineering and product development company, delivering advanced solutions in R&D, consulting, and semiconductor equipment manufacturing. It has a presence in the USA, UK, Singapore, and Japan.

Its joint venture with HHV Group focuses on semiconductor equipment manufacturing, while the acquisition of Semcon Engineering UK Ltd has boosted its global reach. These moves position ASM as a key player in next-gen semiconductor technologies.

These companies are benefiting from India’s push toward semiconductor self-reliance, making them some of the best semiconductor stocks to consider in 2025.

Benefits of Investing in Semiconductor Stocks in India

• High Growth Potential

With the semiconductor industry in India expanding rapidly, investing in semiconductor stocks offers significant growth potential. Government incentives and rising demand for chips further strengthen this trend.

• Government Support

The Indian government is actively supporting the semiconductor industry overview with initiatives like the PLI scheme, which provides incentives for companies investing in semiconductor manufacturing and design. Semicon 2.0 aims to strengthen the entire semiconductor value chain, from chip design to advanced packaging and supply chain resilience.

• Increasing Global Demand

The demand for semiconductors is soaring globally due to the proliferation of smartphones, electric vehicles, IoT devices, and AI-driven applications. Indian semiconductor companies are well-positioned to capitalise on this demand.

• Technological Advancements

Companies involved in semiconductor manufacturing and design are constantly innovating, making them attractive investment options for those looking to benefit from technological advancements.

• Diversification Opportunity

Adding semiconductor industry stocks in India to your portfolio can provide diversification, reducing risk by balancing exposure to different sectors.

Factors to Consider Before Investing in Top Semiconductor Stocks

• Industry Trends

Understanding the latest trends in the semiconductor industry is crucial. Investors should track government policies, global semiconductor demand, and technological advancements.

• Financial Performance

While the industry may be poised to do well, Analysing individual stocks for their financial performance including revenue growth, profitability, and other factors is important.

• Market Capitalisation

Investing in well-established semiconductor companies with a strong market presence can reduce risk while offering stable returns.

• Competitive Advantage

Look for companies with a competitive edge in semiconductor design, manufacturing, or technology solutions.

• Risk Factors

Like any investment, semiconductor stocks carry risks, including global supply chain disruptions, technological changes, and regulatory challenges.

Conclusion

The Indian semiconductor industry is set for a transformational decade, with investments and policy support propelling it toward self-reliance and global competitiveness. With the market projected to reach $110 billion by 2030, and new initiatives like Semicon 2.0 expanding India's semiconductor capabilities, investing in the best semiconductor stocks in India offers a lucrative opportunity for long-term gains. As India strengthens its semiconductor ecosystem, companies in this sector could grow, making semiconductor stocks worth considering for 2025 and beyond.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Market capitalisation figures are approximate and subject to change. Investors should conduct their research or consult financial advisors before making investment decisions.