Top Semiconductor Stocks in India

• HCL Technologies Ltd: HCL Technologies is among the leading Indian semiconductor industry leaders, offering IT services, consulting, and digital solutions across various industries. It specialises in engineering, cloud, and software development, supporting enterprise transformation and global technology operations.
• Bharat Electronics Ltd: Founded in 1954 under the Ministry of Defence, Bharat Electronics is among the top semiconductor companies in India. It makes defence electronics like radars and communication systems, and is expanding into civilian and non-defence applications across India’s tech landscape.
• Vedanta Ltd: Vedanta Ltd, one of the best semiconductor companies India, is into diversified natural resources, into exploration and production of oil, gas, metals and minerals, with presence in zinc, aluminium, iron ore and energy segments.
• ABB India Ltd: ABB India offers electrification, automation and industrial digitalisation solutions, manufactures equipment for energy, utilities and transportation sectors, with a focus on sustainable technologies and smart systems integration.
• CG Power and Industrial Solutions Ltd: CG Power and Industrial Solutions makes transformers, switchgear and industrial electrical equipment for power transmission and distribution, with engineering solutions for utilities and industrial customers.

Here are a few steps you can follow to invest in best semiconductor stocks India 2025:

1. Open a demat/trading/stockbroker account. You can open a demat account with smallcase!
2. Conduct thorough research into the top semiconductor stocks India that are of interest to you. Investors can use tools like the Tickertape Stocks Screener to do this. The screener offers 200+ built-in filters to choose from, and investors can choose the parameters to research and generate a different Indian semiconductor companies list.
3. Place a ‘Buy’ Order at the top for good semiconductor stocks in NSE of your choice.

The Union Budget 2025–26 is viewed as a key milestone for strengthening India’s domestic semiconductor sector, which is vital for technologies ranging from smartphones to defence systems. Building on the earlier ₹76,000 cr PLI scheme, stakeholders expect continued support to strengthen manufacturing and design capabilities.

Key focus areas highlighted by industry observers include:

• Developing complete semiconductor clusters and supporting ancillary industries
• Investing in research, innovation, and talent development to bridge the skills gap
• Extending incentives for domestic and global manufacturers
• Promoting fabless design startups and EDA tools
• Addressing supply chain risks through diversification and strategic partnerships

India’s semiconductor industry has been expanding steadily, with the domestic market estimated at around $23.2 bn in 2022 and projected to reach $80.3 bn by 2028 at a CAGR of 17.1%. Policy support continues to play a significant role in this growth.

Key initiatives include:

• Launch of the $10 bn Semiconductor Fabs Incentive Scheme (SFMIS) to attract global firms
• Introduction of the Production Linked Incentive (PLI) scheme for manufacturing and display sectors
• Establishment of the India Semiconductor Mission (ISM) to coordinate industry development

• Policy Support and Incentives: The Production Linked Incentive (PLI) scheme and other government programs are 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 show a shortage of skilled professionals for chip design, testing and fabrication, hence focus on workforce development.
• Execution and Global Partnerships: Progress will depend on project timelines, policy follow through and global technology partners.
• Long Term Ecosystem: Semiconductor ecosystem is in its infancy, industry is watching out for supply chain robustness and infrastructure growth in next few years.

• Continuous Innovation: Leaders including some semiconductor penny stocks invest in R&D to keep up with fast changing technology.
• Global Footprint: Products and design services reach customers worldwide reducing dependence on any one geography.
• Robust Financials: Healthy cash flows, moderate debt and consistent profitability ensures long term operational stability.
• Strategic Alliances: Partnerships with equipment vendors, OEMs and cloud providers gives competitive advantage and speed to market.
• Resilient Supply Chains: Diversified sourcing and logistics network minimizes production disruptions and meets demand reliably.
• Cyclical: Sector demand follows global industry cycles driven by economic trends and technology upgrades, with phases of semiconductor industry growth and inventory corrections. Indian semiconductor companies revenue and market share can fluctuate based on these cycles.

• High Growth Potential: India’s semiconductor sector benefits from rising electronics demand, which may create growth opportunities as new applications and markets develop.
• Diversification: Investing in the top semiconductor companies listed in India 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 consumer electronics expansion may continue to drive local semiconductor demand.
• Export Potential: Many design and packaging firms serve global clients, providing potential Indian semiconductor companies with revenue diversification beyond the domestic market.

• Volatility: Most of the good semiconductor stocks may experience high price fluctuations. Changes in demand, technological shifts, or broader market trends add uncertainty to Indian semiconductor companies performance in the future.
• Competition: India’s semiconductor market is highly competitive, with many Indian semiconductor companies vying for market share. This competition can lead to price wars and reduced profit margins, negatively impacting stock prices.
• Cyclical Nature: The semiconductor industry exhibits a cyclical nature. It also goes through periods of expansion, often followed by phases of slower Indian semiconductor companies growth or corrections.
• Execution Delays: Building fabs or packaging units is complex. 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 require ongoing R&D investments. Falling behind peers may affect competitiveness and the Indian semiconductor companies market share.

• Order Book and Execution Record: For large companies, investors look at whether project milestones are being met to gauge execution capabilities.
• Capital Structure: High capex requires ongoing review of debt levels, funding sources and working capital cycles.
• Profitability Trends: Margins vary across companies based on their position in the value chain – design, packaging or full scale fabrication.
• Technology Partnerships: Companies with global technology partnerships or licensing agreements get access to advanced manufacturing processes.
• Policy Developments: Many investors track changes in schemes, import duties or export guidelines as these can impact cost structures and profitability.