Best Semiconductor Stocks in India in May 2025: RIR Power, ASM Tech and More Based on 5-Year CAGR

India currently depends on imports to meet its semiconductor needs, as the country still lacks a fully operational domestic chip manufacturing facility. In today’s tech-driven world, the semiconductor industry is vital for economic development.

While India’s semiconductor sector is still in the early stages and accounts for just 3% of the global market, the country is now in a strong position to take advantage of rising chip demand across industries such as electronics, automobiles, telecom, and artificial intelligence. 

Now, let’s explore the top-performing semiconductor stocks as of May 2025, based on their 5-year compound annual growth rate (CAGR).

Snapshot of India’s Semiconductor Industry

As of 2022, India’s semiconductor market was valued at US$ 26.3 billion. It is projected to grow at a robust CAGR of 26.3%, potentially reaching US$ 271.9 billion by 2032. This rapid expansion is mainly driven by the rising use of smartphones and computers, coupled with the government’s efforts to push digital initiatives and online services, particularly in rural regions.

India’s role in the global semiconductor space is becoming increasingly significant, backed by major investments from both Indian and global players. Several companies have set up manufacturing units and R&D centres across the country. For example, Tata Electronics has committed to large-scale investments in chip manufacturing plants in Gujarat and Assam, forming strategic alliances with international leaders like PSMC and Renesas Electronics Corporation.

Best Semiconductor Stock in May Based on 5-Year CAGR

Note: The best semiconductor stocks list in May has been sorted based on 5-Year CAGR as of May 02, 2025. 

Overview of 5 Best Semiconductor Stocks

1. RIR Power Electronics Ltd

RIR Power Electronics Ltd produces conventional semiconductor components, including bridges, power modules, diodes, rectifiers, and thyristors.

For the quarter ended December 2024, RIR Power Electronics Ltd reported a revenue of ₹19.87 crore, slightly up from ₹18.82 crore in September 2024. Net profit for the December quarter stood at ₹1.37 crore, compared to ₹1.53 crore in the previous quarter, while the full-year net profit came in at ₹7.96 crore.

Key Metrics:

• Earning Per Share (EPS) : 11.33
• Return on Equity (ROE): 9.24%

2. ASM Technologies Ltd

ASM Technologies Ltd offers consulting and product development services in engineering and product development. Its semiconductor division focuses on embedded engineering and VLSI design, utilising its expertise and resources in Eastern Europe and Southeast Asia.

In the quarter ended December 2024, ASM Technologies reported a revenue of ₹57.47 crore and a net profit of ₹5.41 crore. For the September 2024 quarter, revenue stood at ₹37.32 crore with a net profit of ₹5.43 crore. 

Key Metrics:

• EPS: 12.74
• ROE: 8.97

3. Solex Energy Limited

Solex Energy Limited, traditionally recognised for its solar solutions, is now venturing into semiconductor technology to support the renewable energy industry. The company is incorporating advanced semiconductor components into its solar products to improve efficiency and performance. 

Solex Energy Limited (NSE: SOLEX), a leading solar brand in India, is expanding its production capacity by launching a 2.2 GW solar module line, bringing its total to 4 GW. 

Key Metrics:

• ROCE: 17.9% 
• ROE: 20.8%

4. SPEL Semiconductor Ltd

Founded in 1984, SPEL Semiconductor Ltd specialises in wafer sorting, assembly, testing, and drop-shipment services for IC chips. SPEL Semiconductor Ltd operates as a subsidiary of Natronix Semiconductor Technology Pvt Ltd, a Singapore-based company and part of the Valingro Group, with an OSAT presence in India.

For the period ending December 2024, the revenue of the company stood at ₹1.89 crore, compared to ₹1.39 crore in September 2024, and ₹12.00 crore for FY23-24. The company reported a net loss of ₹4.83 crore for December 2024, slightly higher than the loss of ₹4.65 crore in September 2024, and a total net loss of ₹16.79 crore for FY23-24.

Key Metrics:

• EPS: -3.86
• ROE: -71.65

5. MosChip Technologies Ltd

MosChip Technologies Ltd is a semiconductor and system design firm specialising in Turnkey ASICs, Mixed Signal IP, semiconductor and product engineering, and IoT solutions. In Q3FY25, the company’s emphasis on improving operational efficiency led to a significant boost in profitability, evident from a higher Profit After Tax (PAT) margin percentage compared to the previous quarter.

In December 2024, MosChip Technologies Ltd reported a revenue of ₹109.76 crore and a net profit of ₹12.15 crore, showing an improvement from ₹105 crore in revenue and ₹7.54 crore in net profit in September 2024. For the full fiscal year 2023-24, the company achieved a revenue of ₹222.84 crore and a net profit of ₹6.22 crore.

Key Metrics:

• EPS: 1.22
• ROE: 7.89

Best Semiconductor Stock in May Based on Market Cap

Note: The best semiconductor stocks list has been sorted based on market cap as of May 02, 2025. 

Best Semiconductor Stock in May Based on Net Profit Margin

Note: The best semiconductor stocks list has been sorted based on net profit margin as of May 02, 2025. 

Key Points to Keep in Mind Before Investing in Semiconductor Stocks in India

Investing in semiconductor stocks can be rewarding, but it’s important to assess a few key areas before diving in:

1. Financial Health:
   Look closely at the company’s financials—check for steady revenue growth, solid profits, and manageable debt levels. Companies with strong balance sheets and stable earnings are more likely to perform well over the long term.
2. Industry Trends:
   The semiconductor industry changes quickly due to shifts in global demand and new technologies. Staying informed about the latest market trends, tech innovations, and geopolitical developments can help you make smarter investment decisions.
3. Diversify Your Portfolio:
   Don’t rely on a single type of chip or company. Spread your investments across different areas of the semiconductor industry, like memory chips, processors, or chip-making equipment, to reduce risk.
4. Regulatory Environment:
   Keep an eye on both Indian and international policy changes. Regulations can impact everything from manufacturing costs to global trade, which in turn affects company performance.

Final Thoughts

Semiconductor stocks offer good growth potential, but they also come with risks. Doing proper research on the sector, company fundamentals, and market conditions is essential. A diversified portfolio and awareness of the broader economic and regulatory environment can help you manage risks and improve your investment outcomes.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.                             

Investments in securities market are subject to market risks, read all the related documents carefully before investing.