Semiconductor stocks in India: India has marked another major milestone to solidify its presence in the global chip supply chain as the Union Cabinet has approved Semicon 2.0, the second phase of the India Semiconductor Mission (ISM), with a total budget outlay of Rs. 1,27,500 crore.
The new edition of the semiconductor programme has provisions to incentivise even suppliers of raw material in the chip manufacturing industry, including minerals and gases.
For investors, this move opens an opportunity in companies with exposure to India’s chip ecosystem.
Semiconductor stocks in India
Let’s take a look at the major semiconductor stocks in India:
– Hitachi Energy India Ltd
– CG Power & Industrial Solutions Ltd
– Dixon Technologies (India) Ltd
– Kaynes Technology India Ltd
– Surana Telecom and Power Ltd
Industry reacts
Muthukumar Narayanaswamy of Kaynes Technology says the government’s push for localisation and backward integration will benefit the entire semiconductor ecosystem, accelerate innovation, and help companies like Kaynes emerge stronger.
Semicon 2.0: Six pillars
Semicon 2.0 is aimed to holistically build the semiconductor ecosystem on the following six pillars:
First pillar: Design: Semicon 2.0 will build upon the initial success in chip design. With 105 startups already started developing chips, the focus is on deepening the design ecosystem. Further, building blocks have been identified for the development of strategic and commercial products. Under Semicon 2.0, the aim is to develop IPs, designs of chips and systems with this approach. The work under Semicon 2.0 will place India as a key semiconductor chip design IP country.
Third pillar: Setting up more fabs: With the first fab scheduled to be commissioned in 2028, the world is showing greater confidence in India’s semiconductor strategy. Efforts will be made to attract more manufacturers to come to India and set up fabs to manufacture chips. This will include silicon fabs, compound semiconductor fabs, discrete component fabs, display fabs, etc.
Fourth pillar: Further strengthening the ATMP/OSAT industry: With the success of ATMP units, the world is now looking at India as an alternative location for setting up ATMP/OSAT units. These will be actively encouraged with a focus on getting some of the most advanced ATMP technologies to India.
Fifth pillar: Research & Development: The semiconductor journey has started with 28nm-110nm as the node. Now, the focus will be on developing more advanced nodes and other advanced technologies in collaboration with leading R&D centres within and outside India.
Sixth pillar: Talent development: With 315 universities training students on complex chip design using the latest EDA tools, around 68,000 students have already been trained. It will be developed further and deepen the level of training while in college. Further, the industry will be actively engaged in deepening the clean room, fab construction and other ecosystem training as well.
Further, Semicon 2.0 will support economic growth across all sectors, strengthen national security through enhanced supply chain resilience, and help establish technological leadership in critical sectors. Approach of building the complete ecosystem, will catalyse semiconductor design and manufacturing in India, the Cabinet said in a statement.
Manufacturing: So far, twelve manufacturing units have been approved with a cumulative investment of over Rs 1.64 lakh crore. These include one Silicon fab, one Silicon Carbide fab, an integrated Gallium Nitride Micro LED Display Fab and nine packaging units expected to cater to chip requirements of sectors such as consumer appliances, industrial electronics, automobiles, power electronics, telecommunications, aerospace, etc. Out of the 12 approved proposals, three companies, Micron, Kaynes and CG Semi have started commercial production and one more are expected to start in 2026.
Design: 24 semiconductor design projects from start-ups and MSMEs have been approved for financial support, while 105 start-ups/MSMEs have been granted access to industry-standard Electronic Design Automation (EDA) tools. These companies are engaged in designing chips and SoCs for a range of strategic and commercial applications, including satellite communications, drones, surveillance cameras, Internet of Things (IoT) devices, LED drivers, AI systems, telecom equipment, and smart meters. These companies are at different stages of design and development and will enter the deployment stage after successful prototyping.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
