Whenever I open my phone, start my scooter, or turn on the smart TV, I am reminded of a simple truth: nothing runs without microchips. For decades, India bought almost every single chip from outside countries. When global factories shut down during past crises, I saw Indian carmakers parked with unsold cars simply because they lacked tiny microcontrollers.
Now, things are changing right before our eyes.
The Indian government has committed billions of dollars to build a home-grown chip ecosystem. According to the IMARC Group – The Rise of India’s Chip Industry: Key Regions & Policy Impact Report, India’s semiconductor market is projected to skyrocket from USD 59.78 billion in 2025 to USD 180.20 billion by 2034, growing at nearly 12% every year. In 2026 alone, our domestic consumption has crossed USD 66.90 billion.
As an investor who loves studying Indian businesses, I spent weeks digging into the latest June 2026 financial filings (Q1 FY27) to find out which stocks have real substance and which ones are just riding market hype.
In this blog, I will break down the numbers, the government schemes, the top stocks, and the harsh risks in very simple English so that you can make smart decisions with your hard-earned money.
India’s semiconductor industry is entering a major growth phase, supported by the ₹76,000 crore Semicon India Programme, rising electronics demand, EV adoption, AI infrastructure, and domestic chip manufacturing initiatives.
Among listed semiconductor-linked stocks, CG Power, Kaynes Technology, and Tata Elxsi are building strong positions across chip packaging, electronics manufacturing, and semiconductor design services.
Higher-risk opportunities such as MosChip Technologies and RIR Power Electronics offer exposure to ASIC design and Silicon Carbide (SiC) semiconductors, but valuations remain elevated.
- ✓ Semiconductor market expected to reach USD 180+ Billion by 2034
- ✓ Government offering massive incentives for chip manufacturing
- ✓ EVs, AI, 5G and data centers driving long-term demand
- ✓ High-growth sector but valuations remain expensive
- ✓ Best suited for patient long-term investors
Quick Summary: What Are the Best Semiconductor Stocks in India
Here is the direct answer for quick reading:
| Company | What It Does | Revenue Growth (YoY) | Profit Trend | P/E Ratio |
| CG Power | Building OSAT plant with Renesas (Japan) | 25.73 | 23% | 110x |
| Kaynes Technology | EMS firm building own OSAT + PCB plant | 33.74% | −24% | 60x |
| Tata Elxsi | Pure chip design, no factory | 0.85% | -19.94 | ~40x |
| MosChip | India’s only listed pure fabless design firm | 58.44% | 238.56% | ~130x |
| RIR Power | 50-year-old firm, new SiC plant in Odisha | 28.46% | +8.50% | ~195x |
| Dixon Technologies | Assembles gadgets, big chip buyer | 27.53% | +33.40% | ~50x |
| ASM Technologies | Builds machines for chip factories | 80.27% | 142.44% | ~110x |
How Big Is the Indian Semiconductor Sector
The short answer is that India is moving from pure chip design to actual physical chip manufacturing and packaging.
Historically, our country suffered from a big imbalance.
According to the Times of India report, India hosts approximately 20% of the world’s semiconductor design engineers, concentrated in technology hubs such as Bengaluru, Hyderabad, and Noida.
Global fabless giants—including Qualcomm, Intel, NVIDIA, MediaTek, and AMD—maintain large research and development teams in India handling core verification, logic synthesis, firmware, and physical design.
Between FY16 and FY24, Indian imports of integrated circuits and memory chips jumped by over 2,000% and 4,500%.
Today, that script is flipping:
- Market Size: India’s chip consumption is on track to cross USD 103.40 billion by 2030 and reach USD 180.20 billion by 2034.
- Approved Mega Projects: The government has already cleared 10 to 12 major semiconductor plants worth over USD 17.18 billion to USD 18.70 billion across six states.
- What Chips Are in Demand?: Logic chips take up 28.5% of demand, memory chips take up 21.5%, and Silicon Carbide (SiC) power chips take up 34.2% of specialized materials.
- Main Growth Drivers: Electric vehicles (EVs), 5G smartphones, renewable solar inverters, and AI data centers are consuming chips at record speeds.
How the Indian Government Is Backing Semiconductor Industry
When I look at capital-heavy sectors like semiconductors, government support is essential. The Government of India has stepped in with decisive policy support through the India Semiconductor Mission (ISM).
1. The ₹76,000 Crore Semicon India Programme
Under ISM 1.0, the central government pays 50% of the project capital expenditure upfront on a pari-passu basis for approved chip fabs and packaging units. State governments like Gujarat and Odisha add another 20% to 25% in financial subsidies.
This means that for every ₹100 a company spends to build a cleanroom or factory, up to ₹70 to ₹75 can come from government support. This protects balance sheets from heavy debt.
2. ISM 2.0 and the Component Scheme (ECMS)
The Union Budget introduced ISM 2.0 to support the entire supply chain, including raw materials, specialty chemicals, cleanroom equipment, and intellectual property.
At the same time, the budget for the Electronics Component Manufacturing Scheme (ECMS) was raised to ₹40,000 crore. In Tranche 5 alone, the government cleared 31 domestic electronics component ventures worth ₹7,877 crore. Customs duties on imported chip-making machines and ultra-pure gases were also eliminated.
3. Design-Linked Incentive (DLI) Scheme
For fabless chip design companies, the government provides financial support of up to ₹15 crore per company to cover electronic design software (EDA tools) and physical chip testing (tape-outs).
Deep Dive: The Best Semiconductor Stocks in India
Let us examine the top listed stocks, their June 2026 quarter (Q1 FY27) performance, and their future roadmaps.
1. CG Power and Industrial Solutions Ltd: The Heavy-Engineering Giant
I have watched CG Power transform remarkably under the management of the Murugappa Group (Tube Investments of India). Rather than building a high-risk silicon wafer foundry, CG Power formed a joint venture called CG Semi with Renesas Electronics and Stars Microelectronics.
They are building an Outsourced Semiconductor Assembly and Test (OSAT) plant in Sanand, Gujarat. This unit will package chips for automotive microcontrollers and smart power modules.
CG Power Share Price
June 2026 (Q1 FY27) Financials & Fundamentals
- Revenue: ₹3,280.81 crore, growing 16.9% year-on-year.
- Net Profit: ₹308.28 crore, up 15.52% year-on-year.
- EBITDA Margin: Healthy at 12.11% to 12.90%.
- Balance Sheet: Almost zero debt (Debt-to-Equity is 0.01x to 0.02x) with an ROE of 15.13%.
- Valuation: Trading at a P/E multiple between 107x and 114x.
Major Investors & Growth Plans
Promoters hold 56.40% through Tube Investments. Domestic mutual funds and institutions raised their stake to 18.30%, while Foreign Institutional Investors (FIIs) hold 11.97%.
Read also: CG Power vs Siemens: Financial, Fundamentals and Future Growth Plans
CG Power’s core business makes industrial transformers and switchgears. Because chip factories need steady electricity, CG Power is also winning electrical orders—such as a recent ₹641 crore order from Power Grid—while preparing to assemble Renesas microcontrollers once the Sanand plant opens.
2. Kaynes Technology India Ltd: The Fast-Paced EMS Compounder
Kaynes Technology is an electronics manufacturing services (EMS) company that has become a favorite on Dalal Street. Through its subsidiary, Kaynes Semicon, it is constructing a major OSAT and packaging campus in Sanand, Gujarat, alongside a high-density printed circuit board plant.
Kaynes Technology Share Price
June 2026 (Q1 FY27) Financials & Fundamentals
- Revenue: ₹946.00 crore, up 40.50% year-on-year.
- Net Profit: ₹56.43 crore, down 24.40% year-on-year.
- EBITDA Margin: 15.60%.
- Balance Sheet: Net debt-to-equity is low at 0.10x, but working capital stretched to 163 days.
- Valuation: P/E ratio stands around 60x to 65x.
Major Investors & Growth Plans
Promoters hold about 57.70%. Domestic institutions hold 19.80%, and FIIs hold 12.50%.
Read also: Syrma SGS vs Kaynes Technology: Which Semiconductor Stock is Best For Long Term
Why did profit drop despite 40.5% revenue growth? When a company builds massive cleanrooms, it incurs upfront expenses for machines, depreciation, and engineering staff before full commercial revenue kicks in. Kaynes has built a massive order book of ₹8,903.80 crore.
Management expects commercial revenue from its Sanand OSAT and PCB plants to start in Q3 FY27, targeting ₹450 to ₹500 crore in initial sales.
In June 2026, it also partnered with AOI Electronics of Japan for technical assembly support.
3. Tata Elxsi Ltd: The Software & Chip Design Powerhouse
Not every semiconductor winner needs to operate a physical factory. Tata Elxsi provides chip design engineering, software verification, and system architecture for global automotive and consumer tech brands.
Tata Elxsi Share Price
June 2026 (Q1 FY27) Financials & Fundamentals
- Revenue: ₹1,021.11 crore, up 14.46% year-on-year (crossing ₹1,000 crore in a single quarter for the first time).
- Net Profit: ₹170.60 crore, up 18.17% year-on-year, though down 22.6% compared to the previous quarter.
- EBITDA Margin: 21.20%.
- Balance Sheet: Zero debt (0.00x) with an ROE between 20.66% and 29.45%.
- Valuation: P/E multiple sits between 38x and 42x.
Major Investors & Growth Plans
Tata Sons and promoter entities hold 43.90%. DIIs hold 11.04%, while FIIs hold 9.85%.
Tata Elxsi works with global leaders like ARM, Infineon, and Renesas on battery management systems and autonomous driving tech.
Under its “Domain + AI” strategy, it is embedding artificial intelligence into silicon design. It also works alongside Tata Electronics, serving as a chip design partner for the group’s upcoming mega-foundry in Dholera.
4. MosChip Technologies Ltd: India’s Pure-Play Design Contender
MosChip Technologies is India’s only publicly listed pure-play semiconductor design house. It designs custom application-specific integrated circuits (ASICs) and mixed-signal chips. It is a verified design partner of TSMC, having taped out more than 200 silicon chips.
Moschip Technologies Share Price
June 2026 (Q1 FY27) Financials & Fundamentals
- Revenue: ₹116.21 crore, down 14.29% year-on-year.
- Net Profit: ₹2.45 crore, down 77.56% year-on-year.
- EBITDA Margin: 10.15%.
- Balance Sheet: Debt-to-equity of 0.17x to 0.57x with an ROE of 8.13%.
- Valuation: High P/E multiple between 126x and 142x.
Major Investors & Growth Plans
- Promoters own 44.50%.
- DIIs hold ~7.90% and FIIs hold ~2.10%.
My key takeaway from MosChip’s June 2026 quarter is the inherent lumpiness of the ASIC business.
Read also: Top 5 Stocks to Watch After BRICS 2026 Summit
When client projects hit intermediate verification stages, milestone billings are paused until physical tape-out, leading to sharp profit drops.
With the integration of its acquisition Vayavya Labs, MosChip is positioning itself to win domestic turnkey chip designs under the government’s DLI scheme.
5. RIR Power Electronics Ltd: The Silicon Carbide Pioneer
RIR Power Electronics has manufactured power devices like thyristors and rectifiers for over five decades. Today, it is making a big transition into Silicon Carbide (SiC) chips, which handle high voltages in electric vehicles, trains, and solar setups.
RIR Power Share Price
June 2026 (Q1 FY27) Financials & Fundamentals
- Revenue: ₹27.16 crore, up 29.28% year-on-year.
- Net Profit: ₹3.14 crore, up 80.60% year-on-year.
- EBITDA Margin: Expanded to 14.66% (adjusted margin at 17.32%).
- Balance Sheet: Debt-to-equity of 0.13x to 0.15x with an ROE between 9.13% and 16.20%.
- Valuation: Commands a premium P/E multiple between 173x and 217x.
Major Investors & Growth Plans
The promoter group, led by Bhavna Mehta, holds 56.30% to 58.70%. Institutional investors include Multitude Growth Funds (6.10%) and Eminence Global Fund (1.80%).
Read also: ESDS Software Solution vs E2E Networks: Which Indian AI Data Centre Stock Best for Long Term Growth
In September 2026, RIR completed the installation of Silicon Carbide wafer manufacturing reactors at its new ₹618 crore facility in Bhubaneswar, Odisha. Management expects initial wafer sales of ₹12 to ₹15 crore in the second half of FY27, targeting a run rate of ₹30 to ₹50 crore per quarter as commercial shipments ramp up.
6. Auxiliary Enablers: Dixon Technologies & ASM Technologies
- Dixon Technologies: While not a chipmaker, Dixon is India’s largest electronics contract manufacturer. For Q1 FY27, Dixon reported revenue of ₹16,076 crore (up 25%) and net profit of ₹718 crore. It secured approval under the government’s ECMS Tranche 5 component scheme and is expanding production to millions of camera modules and smartphones.
- ASM Technologies: Provides engineering design for semiconductor cleanroom tools. In Q1 FY27, revenue rose 61.75% to ₹198.82 crore with a net profit of ₹26.82 crore. Through its joint venture with HHV, it builds robotic wafer-handling equipment and recently approved a ₹500 crore fundraising program to expand cleanroom facilities.
Semiconductor Stocks Snapshot: Fundamental Comparison Table
| Company Name | Sector Focus | Q1 FY27 Revenue (₹ Cr) | Revenue Growth (YoY) | Q1 FY27 PAT (₹ Cr) | Trailing P/E (x) | Debt-to-Equity (x) | Promoter Holding (%) |
|---|---|---|---|---|---|---|---|
| CG Power | OSAT / Electricals | 3,280.81 | +16.90% | 308.28 | 107 – 114 | 0.01 – 0.02 | 56.40% |
| Kaynes Tech | OSAT / EMS | 946.00 | +40.50% | 56.43 | 60 – 65 | 0.10 | ~57.70% |
| Tata Elxsi | Chip Design / AI | 1,021.11 | +14.46% | 170.60 | 38 – 42 | 0.00 | 43.90% |
| MosChip Tech | Pure Fabless ASIC | 116.21 | -14.29% | 2.45 | 126 – 142 | 0.17 – 0.57 | 44.50% |
| RIR Power | SiC Power Chips | 27.16 | +29.28% | 3.14 | 173 – 217 | 0.13 – 0.15 | 56.30% – 58.70% |
| Dixon Tech | EMS / Packaging | 16,076.00 | +25.20% | 718.00 | 43 – 56 | 0.10 | 32.40% |
| ASM Tech | Fab Equipment | 198.82 | +61.75% | 26.82 | 85 – 135 | 0.00 – 0.07 | ~44.28% |
3 Big Risks Every Retail Investor Must Keep in Mind
I believe in India’s semiconductor future, but we must also acknowledge the real risks before investing hard-earned savings:
- Very High Valuations: Many semiconductor-linked stocks trade above 100x P/E multiples. When a stock trades at 100x earnings, the market expects near-perfect execution. Any slight delay in client approvals or plant commissioning can lead to sharp price corrections.
- Gestation Drag on Profits: Building cleanrooms and buying lithography machines requires heavy upfront cash. As seen in Kaynes’ Q1 FY27 results, early depreciation and interest charges can cause short-term profits to fall even while top-line sales rise.
- Critical Talent Shortage: Making chips requires specialized skills. India faces an estimated deficit of 250,000 to 350,000 skilled cleanroom and design technicians by 2027. Wage competition is pushing up employee expenses and pressuring profit margins.
My Final Takeaway
India’s semiconductor transformation is a long-term economic shift. For long-term investors, the focus should be on balance-sheet strength, zero-debt operations, experienced management, and realistic execution timelines.
I personally avoid investing money all at once into high-P/E theme stocks. Instead, staggering purchases over market dips or tracking these businesses quarterly allows you to participate in India’s semiconductor journey with a clear, balanced perspective.
Frequently Asked Questions
Tata Electronics, in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), is building India’s first commercial silicon fab in Dholera, Gujarat, with an investment of ₹91,000 crore (USD 11 billion). While Tata Electronics is currently unlisted, group companies like Tata Elxsi benefit directly through design collaboration.
MosChip is India’s only pure-play listed chip designer. However, its revenue can be volatile due to the timing of ASIC project milestones. It is better suited for investors who can stomach quarterly earnings swings rather than conservative retail portfolios.
ISM pays up to 50% of the capital expenditure for approved factories, while state governments provide another 20% to 25%. This allows companies like CG Power and RIR Power to build costly facilities with lower initial cash outlays and minimal debt.
India’s semiconductor market is estimated at approximately $67 billion in 2026 and is projected to grow to around $180 billion by 2034, driven by rising electronics manufacturing and digital adoption.
OSAT stands for Outsourced Semiconductor Assembly and Test. These facilities package and test semiconductor chips before they are integrated into finished electronic devices.
Among listed Indian companies, Tata Elxsi and MosChip Technologies are prominent examples focused on semiconductor design and engineering services rather than owning fabrication facilities.
Not yet. India’s semiconductor ecosystem is currently focused on packaging, testing, assembly, and chip design. Advanced leading-edge chip fabrication remains under development and is expected to take several more years.
Affiliate Disclosure: Some of the blogs may contain affiliate links. If you purchase through these links, we may earn a small commission at no extra cost to you. This helps us continue providing valuable knowledge and free content through our blogs.
I am a pharmacist , investor, tech savvy and multi-niche content writer with over 5 years of experience and have served more than 15 organisations.
Join CompareWise on WhatsApp
Stock trends, AI workflow breakdowns & smart comparisons directly on your phone.