Top Semiconductor Stocks in India

Semiconductor stocks are shares in companies that design and manufacture chips used in devices such as smartphones, computers, and other electronic products. These companies are key players in industries like electronics, telecommunications, automotive, AI, IoT, and renewable energy.

1. Bharat Electronics Ltd: Founded in 1954 under the Ministry of Defence, Bharat Electronics leads the way in defence electronics manufacturing, including radars and communication systems. The company is also expanding into the civilian and tech sectors across India.
2. HCL Technologies Ltd: HCL Technologies offers IT services, consulting, and digital transformation solutions. The company specialises in engineering, cloud computing, and software development to support global enterprises across various industries.
3. Vedanta Ltd: Vedanta is a diversified natural resources company involved in the exploration and production of oil, gas, and metals. The company’s key operations include zinc, aluminium, iron ore, and power generation.
4. CG Power and Industrial Solutions Ltd: CG Power designs, manufactures, and supplies transformers, switchgear, and electrical equipment for power transmission and distribution. The company provides engineering services to utilities and industrial customers across India.
5. Polycab India Ltd: Polycab India Ltd is India’s largest manufacturer of wires and cables. The company has diversified into fast-moving electrical goods, including fans, LED lighting, switches, and solar products, serving both domestic and export markets.

The Union Budget 2025–26 highlights the Government of India’s push to strengthen domestic semiconductor capabilities with funding and supportive policies. Key takeaways include:

• ₹7,000 cr for Semiconductor Manufacturing: ₹7,000 cr. allocation for semiconductor manufacturing, covering fabrication, packaging, research, development, and design initiatives.
• Support for Fabless Startups & Infrastructure: Support for fabless design startups and advanced testing and packaging infrastructure to build end-to-end domestic capacity.
• R&D and Collaboration for Chip Design: Targeted R&D programs in chip design, coupled with collaborations with academia and global technology partners, are used to train specialised talent.

The Budget reflects a focus on creating a robust indigenous semiconductor ecosystem, attracting global players, and nurturing innovation across the value chain.

Here is how you can invest in the best semiconductor stocks in India:

1. Open a demat/trading/stockbroker account. You can open a demat account with smallcase!
2. Conduct thorough research into the top semiconductor stocks in India using Tickertape Stocks Screener. The screener offers over 200 built-in filters, allowing investors to select parameters and generate a semiconductor share list.
3. Place a ‘Buy’ Order on the top semiconductor stocks that align with your investment thesis.

• Policy Support and Incentives: The Production Linked Incentive (PLI) scheme, along with other government programs, is in place, providing policy visibility and a structured framework for the semiconductor sector.
• Infrastructure and Clusters: Semiconductor clusters with shared facilities and infrastructure are being planned to support domestic capacity creation.
• Sectoral Demand Drivers: Electric vehicles, telecom, consumer electronics and emerging technologies are driving overall demand.
• Skilling and Talent Pipeline: Reports indicate a shortage of skilled professionals in chip design, testing, and fabrication, which is why workforce development is a key focus.
• Execution and Global Partnerships: Progress will depend on project timelines, policy follow-through through and global technology partners.
• Long Term Ecosystem: The semiconductor ecosystem is in its infancy; the industry is closely monitoring supply chain robustness and infrastructure growth over the next few years.

• Continuous Innovation: Leaders, including some semiconductor penny stocks, invest in R&D to keep up with fast-changing technology.
• Robust Financials: Healthy cash flows, moderate debt and consistent profitability ensure long-term operational stability.
• Strategic Alliances: Partnerships with equipment vendors, OEMs, and cloud providers give a competitive advantage and speed to market.
• Resilient Supply Chains: Diversified sourcing and logistics network minimises production disruptions and meets demand reliably.
• Cyclical: Sector demand follows global industry cycles driven by economic trends and technology upgrades, with phases of semiconductor stocks with high growth and inventory corrections. The revenue and market share of Indian semiconductor companies can fluctuate based on these cycles.

• High Growth Potential: Indian semiconductor companies benefit from the rising demand for electronics, which creates growth opportunities as new applications and markets emerge.
• Diversification: Investing in the top semiconductor companies listed on the Indian stock exchange can help diversify your portfolio. Various industries, including healthcare, automotive, and consumer electronics, use semiconductors. This diversification can mitigate risks associated with investing in a single industry.
• Technological Innovation: Continuous R&D and innovation can help companies advance technologies and maintain relevance in a rapidly evolving global industry.
• Government Support: Incentives, subsidies, and partnerships with global technology companies may support industry development and long-term ecosystem building.
• Domestic Demand: Digitalisation, electric mobility, renewable energy, and the expansion of consumer electronics may continue to drive local semiconductor demand.

• Volatility: The top semiconductor stocks in India may experience significant price fluctuations. Changes in demand, technological shifts, or broader market trends introduce uncertainty into the future performance of Indian semiconductor companies.
• Cyclical Nature: The semiconductor industry in India exhibits a cyclical nature. It also goes through periods of expansion, often followed by phases of slower growth or corrections among semiconductor companies.
• Execution Delays: Building fabs or packaging units is a complex process. Delays in approvals, technology transfer, or workforce readiness may affect project timelines.
• Global Supply Chain Exposure: Dependence on imported materials and equipment may expose companies to geopolitical risks, trade restrictions, or currency fluctuations.
• Technology Obsolescence: Rapid technological advancements necessitate ongoing investments in research and development (R&D). Falling behind peers may affect the competitiveness and the market share of Indian semiconductor companies.

• Order Book and Execution Record: For large companies, investors assess whether project milestones are being met to gauge their execution capabilities.
• Capital Structure: High-capex companies require regular reviews of their debt, funding sources, and working capital to maintain liquidity and support growth efficiently.
• Profitability Trends: Margins vary across companies based on their position in the value chain, design, packaging or full-scale fabrication.
• Technology Partnerships: Access to advanced processes through global partnerships can significantly impact a company’s competitiveness, production efficiency, and potential for higher returns, making it a key consideration for investors.
• Policy Developments: Many investors track changes in schemes, import duties or export guidelines as these can impact cost structures and profitability.