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10 Best Semiconductor Stocks in India

30 November 20236 mins read by Angel One
India’s plan to achieve Atma Nirbharta in manufacturing semiconductors will help boost the revenue of the semiconductor manufacturing companies. Check out which are the best semiconductor stocks.
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Semiconductors are like the brains of electronic devices. With the increase in demand for electronic devices, the demand for semiconductors is also increasing. This demand is ultimately making semiconductor stocks popular amongst investors. In this article, learn about the best semiconductor stocks in India, how to analyse them, the factors to consider while investing in them and more.

What Are Semiconductor Stocks?

Semiconductor stocks are shares of companies engaged in the manufacturing and marketing of semiconductors. These are small electrical chips that are critical for electronic devices. It is used for managing the flow of electricity on a wide range of electronic products, home appliances, smartphones, ATMs, electric cars, and others. 

Despite increasing demand, especially under the pandemic condition and limited supply, semiconductor stocks continue to enjoy popularity.

10 Best Semiconductor Stocks in India

Company Name Market Capitalisation in ₹ crore 5-yr CAGR (%) 1-yr Return (%)
Ruttonsha International Rectifier Ltd 613.39 76.83 183.95
Dixon Technologies (India) Ltd 32,364.16 67.38 24.48
Tata Elxsi Ltd 52,248.06 53.27 22.89
ASM Technologies Ltd 500.67 52.35 -9.33
SPEL Semiconductor Ltd 245.16 41.90 0.19
Moschip Technologies Ltd 1,526.05 27.66 31.71
HCL Technologies Ltd 3,60,070.32 22.12 20.15
Surana Telecom and Power Ltd 154.77 19.39 10.68
Vedanta Ltd 87,787.17 3.44 -23.78

Note: The best semiconductor stocks list in India listed here are as of November 23, 2023. They are sorted as per the 5-year CAGR.

  • Ruttonsha International Rectifier Ltd

The small-cap company’s product category includes semiconductor devices and power equipment. Their semiconductor devices include phase control thyristors, investor-graded thyristors, standard recovery diodes, fast recovery diodes, high voltage modules, and more.

  • Dixon Technologies (India) Ltd

The third company on the list, Dixon Technologies, is a home-grown manufacturing company. It provides electronic manufacturing services (EMS) to various industries, including electronics, home appliances, lighting products, mobile phones, and others.

  • Tata Elxsi

The company operates in two segments – system integration and support and software development and services. Tata Elxsi, a global leader in technology design and services, has paired with Renesas Electronics Corporation, a pioneer in advanced semiconductor solutions, to develop a state-of-the-art design centre in Bangalore. 

  • ASM Technologies Limited

The company offers consulting in engineering, product engineering, and product research and development services. Its services include automation solutions, compromise assessment digital engineering, the Internet of Things, robotics, and driver assistance systems. 

  • SPEL Semiconductor Ltd

SPEL Semiconductor company primarily offers integrated circuit (IC) assembly and test facilities and semiconductor packaging solutions.   

  • Moschip Technologies Ltd

The India-based company is a fabless model semiconductor and Internet of Things/everything (IoT/E) focused manufacturer. They specialise in product design and development services, including chip design and system development. 

  • HCL Technologies Ltd

HCL Technologies is an India-based multinational technology company operating in three business segments: IT and Business services, Engineering and R&D services, Products and Platforms.

  • Surana Telecom and Power Ltd

The Indian company is engaged in the manufacturing and trading of solar-related products. Its segments include renewable energy and trading, and others. 

  • Vedanta Ltd

Vedanta is a diversified natural resource company that operates across segments: copper, aluminium, iron ore, power, lead, gas, etc. As of July 2023, the company is in talks with other international companies to partner. The company announced that the first phase of their semiconductor project will involve a $5 billion investment, and the overall outlay will be $20 billion. 

  • MIC Electronics Ltd

The company manufactures light-emitting diode displays and LED lighting, including indoor and outdoor displays, mobile displays, and application-specific displays. The company has been operational since 1988.

Semiconductor Industry in India

The Indian semiconductor industry is enjoying a lot of traction as the demand for semiconductors has increased. The semiconductor market in India is expected to touch $80.3 billion by 2028. This can be the result of factors like the rising penetration of smartphones, tablets, and other electronics and increasing data consumption.

The following are some of the recent developments in the sector:

  • Micron Technology, one of the largest chip makers in the world, has announced an investment of more than $800 million to build a new semiconductor assembly and test unit in Gujarat, India.  
  • India has joined the global force in making semiconductor chips. The government has announced a $10 billion economic package to attract semiconductor manufacturers. Currently, the Asian semiconductor market is controlled by a few countries led by China. India plans to build capacity to fill the niche as some countries and companies are looking for alternatives to China.
  • As the semiconductor market expands, it will create more job opportunities in the economy.  

Conclusion

Currently, the semiconductor industry is one of the most popular industries in India, with major developments. Government initiatives and new investments can help to develop and strengthen the semiconductor manufacturing ecosystem in India. If you want to explore any of these stocks, you can open a demat account with Angel One. 

Disclaimer: This blog is exclusively for educational purposes. The securities quoted are exemplary and are not recommendatory.

FAQs

What are the top 5 semiconductor stocks in India?

The top 5 semiconductor stocks in India as per the market capitalisation are HCL Technologies Ltd, Vedanta Ltd, Tata Elxsi Ltd, Dixon Technologies (India) Ltd and Moschip Technologies Ltd. 

Why invest in semiconductor companies?

Semiconductor companies are essential to the modern world, producing the tiny chips that power everything from our smartphones to our cars. As technology advances, demand for semiconductors is expected to grow, making semiconductor stocks a potentially lucrative investment.

Who should invest in semiconductor stocks in India?

Semiconductor stocks can be a good investment for people with a long-term investment horizon and a high-risk tolerance. The industry is volatile, but it is also expected to grow significantly in the coming years.

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