Best Semiconductor Stocks in India 2025
Last Updated: 24 June, 2025
5 min read
00:00 / 00:00
The semiconductor industry is at the core of modern electronics, powering everything from smartphones and electric vehicles to 5G and AI applications. India, while traditionally a consumer of semiconductors, is now gearing up to become a global manufacturing and design hub. With the government’s Rs. 76,000 crore incentive scheme under the “Semicon India” program and increasing private investments, the Indian semiconductor sector is poised for rapid expansion.
As per a report by the India Electronics and Semiconductor Association (IESA), India’s semiconductor market is expected to reach 80 to 85 billion dollars by 2030. In this article, we’ll explore some of the top semiconductor related stocks listed on Indian exchanges. These companies have been sorted based on their market capitalization as of June 2025.
Best Semiconductor Stocks in India 2025
Stock
Market Cap (Rs. Cr)
Price (Rs.)
1Y Return (%)
3,06,316
419.25
37.19%
1,04,222
682.85
0.89%
Dixon Technologies
88,191
14,609
26.78%
86,273
19,400
74.03%
37,425
5,850
50.54%
38,818
6,244
-12.80%
Honeywell India
33,813
38,325
-31.44%
14,495
1,306
-30.11%
3,416
178.25
-36.39%
RIR Power
2,057
2,693.55
35.16%
Company Overviews
1. Bharat Electronics Limited (BEL)
BEL is a defense PSU known for electronic warfare, radar, and naval systems. It is expanding into chip development with capabilities in semiconductor fabrication and testing, particularly for strategic and military-grade applications.
2. CG Power and Industrial Solutions
Backed by Tube Investments and the Murugappa Group, CG Power is moving into semiconductor and component manufacturing. It has announced plans for R&D in chip tech and potential wafer fabrication partnerships to support India's chip ecosystem.
3. Dixon Technologies
Dixon is India’s leading electronics manufacturing services (EMS) company, assembling mobile phones, LED TVs, and more. It has partnered with global chipmakers to set up surface-mount technology (SMT) lines for chip packaging and integration.
4. Hitachi Energy India
Best known for power infrastructure, Hitachi Energy is entering the semiconductor space through smart grid solutions and embedded control systems. Semiconductors are central to its offerings in industrial automation and digital substations.
5. Tata Elxsi
A Tata Group company, Tata Elxsi provides advanced chip design and engineering services, including system-on-chip (SoC), VLSI, and embedded systems. It supports global semiconductor companies and automotive clients, especially in EV and ADAS domains.
6. Kaynes Technology
Kaynes is an EMS provider focusing on chip-level system integration and embedded solutions. It plays a key role in India’s fabless semiconductor space and works with startups and design houses to bring advanced products to market.
7. Honeywell Automation India
Honeywell’s India unit focuses on industrial IoT, smart manufacturing, and process automation. Many of its core products rely on embedded semiconductor systems for sensing, control, and connectivity solutions.
8. Cyient
Cyient is an engineering services and semiconductor design company offering VLSI, embedded systems, and ASIC design. It caters to aerospace, telecom, and semiconductor firms globally, playing a strong role in chip development and IP services.
9. MosChip Technologies
Hyderabad-based MosChip is a fabless semiconductor company that develops custom ASICs, IP cores, and SoC designs. It has deep expertise in chip design services and is one of the earliest Indian companies focused solely on semiconductors.
10. RIR Power Electronics
RIR manufactures power electronic systems and rectifiers that are key to high-efficiency applications in power distribution and industrial electronics. Its work forms part of the broader semiconductor value chain in India.
What’s Good About Investing in the Semiconductor Industry?
Government Push: Large-scale incentives under India’s semiconductor mission.
Global Demand: Growing need for chips in AI, EVs, telecom, and defense.
Emerging Fab Ecosystem: India’s move toward self-reliance (Atmanirbhar Bharat) boosts semiconductor opportunities.
R&D Opportunities: High-margin potential for design and IP-based companies.
What’s Bad About Investing in the Semiconductor Industry?
High Capital Intensity: Fabs require billions in investments with long payback periods.
Geopolitical Risks: Semiconductor supply chains are vulnerable to global trade tensions.
Tech Obsolescence: Rapid tech changes can make certain products or IPs redundant.
Dependency on Global Players: India still relies on imports for core chipmaking machinery and raw materials.
Who Should Invest in Semiconductor Stocks?
Long-term investors are looking for high-growth sectors.
Investors are comfortable with medium-to-high volatility.
Those interested in thematic plays like AI, IoT, EV, and defense tech.
Retail investors who can diversify their risk via multiple semiconductor-linked stocks.
Tips for Investing in Semiconductor Stocks
Diversify: Invest across the semiconductor value chain – from design to testing to assembly.
Track Global Trends: Semiconductor demand is linked to global tech cycles.
Evaluate P/E & Growth: Some stocks are richly valued, so balance valuation with growth potential.
Follow Policy Updates: Stay updated on India’s chip policy developments and budget announcements.
How to Invest in Semiconductor Stocks for the First Time?
Investing in semiconductor stocks through Rupeezy is quick and seamless:
Download the Rupeezy App or go to the Rupeezy Web App
Complete Your KYC: Upload PAN, Aadhaar, and other details to activate your demat account.
Create a Watchlist: Use filters to shortlist semiconductor-related stocks, such as Dixon, Kaynes, BEL, etc.
Add Funds:
On app: Tap “Wallet” and click “Add Funds.”
On web: Go to your profile (top right corner) and choose “Add Funds.”
Place Order: Select the stock, enter quantity, and click “Buy.” That’s it!
Conclusion
The semiconductor sector in India is entering an exciting phase backed by government support, industry interest, and global demand. Whether you're a beginner or seasoned investor, these semiconductor-linked stocks provide a strong foundation for long-term growth.
However, as with any sector, don’t blindly follow trends. Do your own research, evaluate risks, and invest smartly, especially in a tech-driven and fast evolving industry like semiconductors.
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The content on this blog is for educational purposes only and should not be considered investment advice. While we strive for accuracy, some information may contain errors or delays in updates.
Mentions of stocks or investment products are solely for informational purposes and do not constitute recommendations. Investors should conduct their own research before making any decisions.
Investing in financial markets are subject to market risks, and past performance does not guarantee future results. It is advisable to consult a qualified financial professional, review official documents, and verify information independently before making investment decisions.
Stocks Selection Criteria
The stocks in this article are shortlisted based on an analysis of various financial metrics, including Market Capitalization, Sales, Profit, Sales Growth, Profit Growth, ROE, ROCE, Debt-to-Equity, and PE ratio. The companies that performed best across all these parameters are placed in this list.
These financial metrics may change over time, so investors should conduct independent analysis before making any investment decisions.
It is important to note that the stocks mentioned in this article are for informational purposes only and do not constitute any recommendations.
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