India’s semiconductor boom: These stocks could be your best pick

The right investment at the right time can make all the difference. Think about it – had you bought shares in tech giants during their early days, your portfolio might look completely different today.
The semiconductor boom in India presents a similar opportunity. With Semicon India 2024 in full swing and plans for Semicon 2.0 on the horizon, the country’s semiconductor industry is on track for explosive growth.
For investors, this could be the perfect moment to ride the wave. But which stocks hold the most potential? From chip manufacturing to supply chain players, several key names are emerging as strong contenders in this fast-evolving sector.
Semicon India 2024, alongside the proposed Semicon 2.0 initiative, marks a key milestone in India’s efforts to establish itself as a leading global hub for semiconductor manufacturing.
The development of the semiconductor value chain—ranging from chip design to manufacturing and assembly—is expected to benefit various companies in the sector.
Investors are increasingly focusing on stocks tied to this growth, anticipating long-term gains as the demand for semiconductors surges, both globally and locally.
As the Indian government pushes to reduce reliance on imported chips and encourage local production, some key companies stand out. Dixon Technologies, CG Power, Vedanta, and Kaynes Technology are expected to be major players in the semiconductor space.
Vedanta has already announced significant projects to enter semiconductor manufacturing, aiming to contribute to India’s chip-making capacity.
Meanwhile, Dixon Technologies is well-positioned in the assembly and design of semiconductor-based products.
With its extensive experience in electronics manufacturing, the company is likely to play a key role in the industry’s growth. CG Power, known for its expertise in electrical equipment, is expected to benefit from the increased demand in semiconductor-driven sectors such as electric vehicles and smart infrastructure.
Innovation and the government’s push for self-reliance are crucial factors that may drive long-term opportunities for these companies.
Dr Ravi Singh, SVP of Retail Research, Religare Broking, believes that Semicon India 2024, along with the Semicon 2.0 plans, is crucial for India’s semiconductor journey.
He said, “Dixon Technologies, CG Power, Vedanta, and Kaynes Technology are expected to benefit handsomely. Vedanta is already moving ahead with major semiconductor projects, while Dixon Technologies is playing an essential role in product assembly and design. CG Power remains well-positioned for the growing demand in semiconductor-driven industries like EVs and smart infrastructure.”
The long-term opportunities, Singh noted, lie in India’s growing focus on innovation and reduced dependence on imports. With this push for technological independence, companies in the semiconductor value chain are expected to see sustained growth.
Several experts also highlight other companies that could be strong performers as India’s semiconductor industry develops.
Vinnaayak Mehta, Founder of The Infinity Group, points to companies like SPEL Semiconductor Ltd, ASM Technologies, and RIR Power Electronics. According to Mehta, these firms are well-placed to capitalise on the ongoing government support and the rising demand for semiconductors.
“Investors should keep a close eye on these stocks. The ongoing government incentives, coupled with strategic industry investments, make semiconductor stocks a compelling investment opportunity. India’s focus on supply chain resilience and technological self-reliance ensures that this sector will continue to grow,” Mehta said.
If you’re considering adding semiconductor stocks to your portfolio, some of the most promising names in the market as per Vaibhav Vidwani, Research Analyst at Bonanza, include:
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)