List of Top Semiconductor Stocks in India for 2024

As technology evolves and digitalisation becomes the norm, the demand for semiconductor products has recently been on an upward curve. This makes semiconductor stocks an exciting investment option. In this blog, we’ll explore the top semiconductor stocks in India’s NSE and how to invest in them. We will also explore their future, features, benefits and factors to consider when investing in semiconductor stocks!

Top Semiconductor Stocks in India Listed in NSE for 2024

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data in this list of top 10 semiconductor companies in India, including the semiconductor share price, is subject to real-time updates.

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Overview of the Semiconductor Companies in India

Here is a brief overview of the best semiconductor stocks in India above:

MIC Electronics Ltd

MIC Electronics Limited, a top semiconductor company in India, specialises in manufacturing electric lighting equipment, including light-emitting diode (LED) displays and lighting products. It operates across three main segments: LED Products, Medical and Other Appliances, and Automobiles. 

CG Power and Industrial Solutions Ltd

CG Power and Industrial Solutions Limited is also known as Crompton Greaves Limited. It is an Indian multinational company headquartered in Mumbai. It designs, manufactures, and markets products for power generation, transmission, distribution, and rail transportation. In 2020, the Chennai-based Murugappa Group acquired the company from the Avantha Group. 

Tata Elxsi Ltd

Tata Elxsi Limited provides product design, engineering, systems integration, and support services across India, the United States, Europe, and other international markets. The company has two main segments: Systems Integration and Support, and Software Development and Services. 

Bharat Electronics Ltd

Bharat Electronics Limited (BEL) is a government-owned Indian company specialising in aerospace and defence electronics. BEL is one of the sixteen public sector undertakings (PSUs) under India’s Ministry of Defence. It produces advanced electronic products for both ground and aerospace applications. 

Polycab India Ltd

Polycab India Ltd. manufactures and sells electric wires and cables. The company operates in three main segments: Wires and Cables, Fast-Moving Electrical Goods (FMEG), and International Business. 

HCL Technologies Ltd

HCL Technologies Ltd. is a technology company that offers computer programming, consultancy, and related activities. It operates in three segments: Information Technology and Business Services (ITBS), Engineering and Research and Development Services (ERS), and Products and Platforms. 

ABB India Ltd

ABB India Ltd. manufactures electric motors, generators, transformers, and electrical distribution and control equipment. Its operations are divided into four segments: Motion, Robotics and Discrete Automation, Electrification, and Process Automation. 

Dixon Technologies (India) Ltd

Dixon Technologies (India) Limited, founded in 1993 and based in Noida, India, provides electronic manufacturing services. The company manufactures a range of consumer electronics, including LED TVs, AC PCBs, and home appliances like washing machines. 

RIR Power Electronics Ltd

RIR Power Electronics Limited, based in Mumbai, India, manufactures and sells power semiconductor devices and high-power equipment. The company offers a range of semiconductor devices, including phase control and inverter-grade thyristors, diodes (standard and fast recovery), power modules, high-voltage modules, diode bridge rectifiers, pulse DC rectifiers, soft starters, and IGBT modules. 

Havells India Ltd

Havells India Ltd. develops electrical and power distribution equipment. Its operations cover segments like switchgear, cables, lighting and fixtures, electrical consumer durables, and Lloyd Consumer.

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What are Semiconductor Stocks?

Semiconductor stocks refer to stocks of semiconductor companies listed in India that design, develop, and manufacture semiconductors. Semiconductors in India are electronic components that control the flow of electricity in devices like smartphones, computers, and other electronic gadgets. 

Semiconductor stocks in India are important for the economy because they play a vital role in the technology sector’s growth. The demand for electronic devices is constantly increasing, and semiconductor companies, including bluechip stocks in India, are at the forefront of innovation to meet this demand.

Semiconductor Industry Stocks in India – Overview

The Indian semiconductor industry is growing rapidly.

The Indian semiconductor market was valued at approximately $23.2 billion in 2022 and is projected to reach $80.3 billion by 2028, growing at a compound annual growth rate (CAGR) of 17.10% during the forecast period.

The government has taken several initiatives to boost the semiconductor shares market in India, such as:

• The setting up of the $10 billion Semiconductor Fabs Incentive Scheme (SFMIS) to attract semiconductor manufacturing companies to India.
• The introduction of the Production Linked Incentive (PLI) scheme for the semiconductor and display manufacturing sector.
• The setting up of the India Semiconductor Mission (ISM) to coordinate the development of the semiconductor industry stocks.

Why Invest in Semiconductor Stocks?

Here are a few reasons why one can consider investing in semiconductor stocks:

1. Integral Role in Technological Advancements

Semiconductors are the backbone of modern devices like smartphones, computers, and even cars. Semiconductor companies in India are playing a crucial role in powering this global tech revolution. From artificial intelligence (AI) to 5G, semiconductor chips are in constant demand, making the best semiconductor stocks in India an attractive opportunity for investors. For those looking to diversify into technology sectors, reviewing the list of semiconductor companies in India offers a gateway into this dynamic industry.

2. Growing Semiconductor Manufacturing in India

With India investing heavily in the semiconductor business, the country is positioning itself as a key player in the global supply chain. Semiconductor manufacturing in India is ramping up, driven by both domestic demand and export opportunities. For investors, tracking semiconductor companies shares in India is a smart way to tap into this growing sector. Some companies are even listed among the top 10 semiconductor stocks in India, showing their increasing relevance.

3. Diversification and Economic Growth

Investing in semiconductor companies stocks in India provides not only diversification but also exposure to global tech trends. Companies involved in the semiconductor business in India are highly sensitive to advancements in sectors like AI, IoT, and cloud computing. By analysing the semiconductor companies share price and market performance, you can get a clear sense of their growth potential. The rise in semiconductor manufacturing in India stocks is also a good indicator of the country’s technological expansion.

4. Semiconductors as Economic Indicators

Semiconductor stocks serve as a valuable indicator of broader economic and technological trends. The performance of semiconductor shares India often reflects the health of industries like electronics, automotive, and high-performance computing. Investors tracking the India semiconductor stocks can anticipate shifts in global demand and economic cycles, particularly with increasing focus on local production through initiatives like semiconductor manufacturing in India.

5. Opportunities in Penny Stocks

For those willing to take on more risk, there are also semiconductor penny stocks India that offer growth potential at lower entry points. While riskier, these smaller companies in the semiconductor business in India could offer substantial returns, especially as India scales up its manufacturing capabilities. Keeping an eye on semiconductor companies in India share price fluctuations can help investors identify these high-risk, high-reward opportunities.

How to Invest in Semiconductor Stocks?

You can invest in semiconductor stocks in India through various methods, including purchasing individual semiconductor chip stocks, investing in semiconductor exchange-traded funds (ETFs), or putting your money into semiconductor mutual funds. Investors should also conduct research and keep themselves updated on the latest trends and developments in the semiconductor industry in India to make informed investment decisions.

How to Choose the Best Semiconductor Stocks in India to Invest in?

You can follow the following tips in order to choose the best semiconductor stocks in NSE in India available in the market right now in India 2024:

Evaluate Financial Health

Investors can begin by assessing the financial stability of potential semiconductor and display industry stocks. Investors can analyse metrics such as revenue growth, profitability, and debt levels to gauge the overall financial health of the semiconductor and display industry stocks in India that are under consideration.

Assess Technological Edge

Investors may consider the technological prowess of each company. A robust history of research and development indicates innovation potential, a crucial factor in the ever-evolving semiconductor industry tied closely to technological advancements.

Stay Informed on Market Trends

It may be wise to keep abreast of market trends and global demand for the best semiconductor stocks to buy in India. Understanding industry shifts, geopolitical influences, and emerging technologies can be essential for making informed investment decisions.

Diversify Across Subsectors

Investors can try to mitigate risks associated with market volatility by diversifying across subsectors within the semiconductor industry. Whether it’s memory chips or processors, a diversified portfolio can provide a buffer against sector-specific challenges.

Consider Financial Metrics

Investors can utilise financial metrics such as the price-to-earnings ratio and dividend yield. Consequently, gain insights into the valuation and potential returns of semiconductor stocks in India. However, bear in mind that historical performance does not guarantee future success.

Stay Attuned to Regulatory Environments

Investors can try to be aware of regulatory environments that may impact the chip manufacturing companies in India, both domestically and internationally. Policy changes can have significant implications for the industry, influencing investment outcomes.

Features of the Top Semiconductor Sector Stocks in India

When exploring the landscape of the best semiconductor stocks in India, understanding the distinctive features of the leading companies becomes imperative. These characteristics contribute to their prominence in the market without implying any specific investment advice.

• Technological Innovation: Top semiconductor and display industry shares, including semiconductor penny stocks in India are characterised by their commitment to innovation. Companies at the forefront continually invest in research and development, staying ahead in the rapidly evolving semiconductor industry.
• Global Presence: Leading semiconductor companies in India often boast a global footprint. Their products and services are not confined to the domestic market, showcasing a robust international presence and engagement.
• Financial Health: Examining the financial health of India’s semiconductor stocks NSE is crucial. Market leaders typically demonstrate stable financials, including healthy revenue streams, manageable debt levels, and consistent profitability.
• Strategic Partnerships: Collaboration and strategic partnerships are key features of top semiconductor sector stocks. Aligning with other industry leaders or forging alliances with tech giants enhances their market position and facilitates mutual growth.
• Supply Chain Resilience: The resilience of the supply chain is a critical factor. Robust semiconductor companies have well-managed supply chains, mitigating potential disruptions and ensuring a steady flow of products to meet market demands.

Future of the Semiconductor Sector in India

Current Industry Insights

India currently relies entirely on semiconductor imports, predominantly from Taiwan, China, Korea, and Vietnam, amounting to approximately $24 bn. Anticipated growth in India’s semiconductor market is projected to reach $63 billion by 2026, quadrupling its current size, driven by impending 5G adoption.

A recent governmental agreement with the European Union on semiconductor research and technology aims to bolster India’s semiconductor supply chain. This is to be done through collaboration in research, innovation, and talent development.

The Indian government has initiated several measures. Notably, it has allocated ₹76,000 crore under the Production-linked Incentive (PLI) scheme to support domestic semiconductor and display manufacturing. This initiative aims to establish around 20 semiconductor plants and promote design and component fabrication. Subsidies provided under the scheme will reduce manufacturing costs, encouraging increased production and potentially creating 35,000 direct and 100,000 indirect jobs.

Additionally, India’s ‘Semicon India Program’ invites international semiconductor firms to establish manufacturing facilities, offering up to 50% project cost coverage. This initiative has garnered interest from major global players like TSMC, Intel, and AMD, along with significant domestic investments, such as Tata Group’s $300 million plan and Vedanta’s $15 billion investment in semiconductor facilities.

Future of the Semiconductor Industry

Despite recent challenges, the semiconductor industry is poised for long-term growth, fueled by the relentless demand for electronics and technological advancements. This innovative sector has witnessed remarkable progress, with semiconductor chips becoming exponentially more efficient and powerful over the past decades. The global surge in demand is also reflected in regions like India, where semiconductor manufacturing in India is playing a crucial role in the global supply chain, contributing to the increasing importance of India semiconductor stocks.

Given their widespread presence, it is unlikely that semiconductors will be replaced in the near future. Instead, they will continue to evolve and improve, driven by breakthroughs in materials science, such as the discovery and application of novel materials like graphene. Additionally, the emergence of quantum computing and photonic circuits may complement traditional semiconductors, further enhancing their capabilities. The best semiconductor companies in India are actively working on integrating these advancements into their production lines, ensuring that India remains competitive in the global market.

The semiconductor industry’s resilience and adaptability ensure its continued relevance in the years to come. As technological advancements continue to shape the future, the demand for semiconductors will remain strong, driving growth and innovation in this critical sector. Investors are closely monitoring the top 10 semiconductor stocks in India and other semiconductor companies stocks in India, as the country positions itself as a major player in this high-growth industry.

Risks Associated with Investing in Semiconductor Shares

Here is a list of possible challenges while investing in the best semiconductor stocks in India. 

• Volatility: Semiconductor stocks India can be highly volatile. Changes in demand, technological advancements, and stock market trends often affect them. This volatility can make it difficult to predict future returns.
• 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 manufacturing industries are cyclical, meaning that they go through periods of growth and decline. 

Advantages of Investing in Semiconductor Stocks in India

There are multiple reasons why you should invest in top semiconductor companies in India listed in NSE. Thus, some of them have been listed below: 

• High Growth Potential: Semiconductor stocks in India operate in a rapidly evolving industry. The demand for these sector is constantly increasing due to the rising popularity of electronic devices. As a result, the top semiconductor stocks in India have the potential to generate high returns for investors.
• Diversification: Investing in the best semiconductor companies 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: Semiconductor stocks in India are constantly innovating to keep up with the demands of the market. Investing in these semiconductor manufacturing companies in India stock market can increase your exposure to cutting edge technologies and the growth potential associated with it.

Factors Affecting Semiconductor Stocks

Let’s look at the factors affecting semiconductor stocks, particularly semiconductor stocks in India NSE.

• Global Chip Shortage: The worldwide shortage of chips has the potential to disrupt manufacturing processes and influence the performance of semiconductor companies in India stock market, as well as those reliant on semiconductor components globally. This shortage also impacts semiconductor chip manufacturing companies in India, creating challenges for these firms and influencing semiconductor stocks in India.
• Technological Advancements: The swift progress in chip technology has the capacity to render current technologies outdated, posing challenges for semiconductor companies in India that have not kept pace with these advancements. Keeping up with such rapid technological changes is crucial for firms aiming to maintain their place on the semiconductor stocks list India, as investors continue to search for the best semiconductor stocks India.
• Government Policies: Shifts in government policies concerning subsidies and regulations have the potential to affect the profitability of semiconductor chip manufacturing companies in India. This is particularly evident for firms listed in semiconductor stocks in India NSE. Staying informed about these regulatory changes is crucial, as policies could significantly impact silicon stocks in India and other semiconductor stocks across the country.

Factors to Consider Before Investing in Semiconductor Shares

Before diving into manufacturing semiconductor stocks to buy in India, consider the following factors are crucial. 

• Semiconductor Share Price: The semiconductor companies’ share price is the value of a single share of a semiconductor company. It is calculated by dividing the company’s total market capitalisation by the number of outstanding semiconductor company shares in India. Several factors can influence semiconductor companies in India’s share prices, including the demand for semiconductors, market trends, global economic conditions, and technological advancements. 
• Research the Semiconductor Companies: There are several semiconductor stocks to choose from. Investors should consider various factors when choosing the best semiconductor manufacturing stocks in India. These factors include the company’s financial stability, market performance, growth potential, and dividend payout. 
• Be Mindful of Risks Associated: Investors should also stay mindful of the risks associated with the semiconductor business, such as market fluctuations in the semiconductor industry and alterations in global trade policies.

Understanding and monitoring these factors is essential for successful investing in semiconductor shares. However, investors must do their own research or consult their financial advisor before investing.

Should You Invest in Semiconductor Stocks?

With the growing importance of semiconductors in devices like smartphones, electric vehicles, and AI-driven technologies, investing in semiconductor stocks has garnered significant interest. India’s push to become a global semiconductor hub has led to opportunities in listed semiconductor manufacturing companies in India.

Several companies, such as SPEL Semiconductor, are part of the semiconductor stocks list on the NSE. These stocks could potentially benefit from government incentives and the rising demand for chips. Semiconductor listed companies in India, ranging from established players to penny semiconductor stocks, may offer a range of investment options. Additionally, India’s focus on expanding semiconductor chip manufacturing companies could strengthen this sector.

As you consider whether to invest in semiconductor companies in the India stock market, it may be helpful to assess the performance of semiconductor manufacturers in India, including chip manufacturing companies in India stocks. While semiconductor stocks can provide growth potential, they may also be volatile due to market cycles and supply chain issues.

If you are considering adding semi conductor shares to your portfolio, evaluating both well-established companies and those in list of semiconductor penny stocks may help you make informed decisions.

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To Wrap It Up…

In conclusion, semiconductor shares offer significant growth potential for investors looking to invest in the technology sector. Understanding the semiconductor market in India, choosing the right semiconductor manufacturers, and knowing how to invest in semiconductor shares is essential for successful investing in this field. With the right research and investment strategy, portfolio investing of semiconductor shares can be a profitable investment opportunity for investors.

Frequently Asked Questions on Semiconductor Stocks