India’s semiconductor sector is poised for massive growth, with industry projections estimating the market to reach ₹9.6 lakh crore ($100–110 billion) by 2030, more than doubling from its current size of around $45–50 billion in 2024-2025.

In 2023, the Indian semiconductor market was valued at approximately $38 billion. The surge in global semiconductor demand, coupled with vulnerabilities in supply chains concentrated in limited geographic regions, has emphasized the need for diversified and localized manufacturing capabilities.

Government initiatives such as the India Semiconductor Mission, Semicon India Program, and the recognition of Electronics System Design and Manufacturing (ESDM) as a core sector under the Make in India scheme have created a strong foundation for domestic chip manufacturing and design.

Globally, the semiconductor market is projected to hit $1 trillion by 2030, with India set to play a key role across equipment, materials, and services. The country’s MSME network, abundant access to chemicals and minerals, and skilled workforce in AI, big data, IoT, and chip design position it as a major global semiconductor hub.

In May 2025, Union Minister Shri Ashwini Vaishnaw inaugurated two semiconductor design facilities in Noida and Bengaluru, specializing in 3-nanometer chip design—a leap from India’s earlier 7nm and 5nm capabilities.

Key Semiconductor Stocks to Watch

1. Hind Rectifiers Limited

  • Market Cap: ₹3,153 crore

  • Stock Movement: +1% at ₹1,859 (BSE)

  • Business: Designs and manufactures power electronics equipment including converters, rectifiers, inverters, motors, and HVAC systems.

  • Notable Stakeholder: Ace investor Mukul Mahavir Agrawal holds a 1.46% stake.

2. RIR Power Electronics Limited

  • Market Cap: ₹1,774 crore

  • Stock Movement: Hit 5% upper circuit at ₹231.20 (BSE)

  • Recent Update: Expanded production of 1200V Silicon Carbide (SiC) Diodes in collaboration with Pro Asia Semiconductor Corporation, Taiwan.

  • Specialty: India’s only manufacturer of silicon-based power semiconductor devices. Setting up India’s first silicon carbide fabrication plant in Odisha.

3. Kaynes Technology India Limited

  • Market Cap: ₹38,893 crore

  • Stock Movement: -5% to ₹5,791 (BSE)

  • Business: Leading Electronics System Design and Manufacturing (ESDM) and IoT solutions provider.

  • Capex Plans: ₹3,400 crore for semiconductor business; ₹1,400 crore for PCB segment.

  • Subsidiary: Kaynes Semicon Private Limited—offering advanced chip packaging and silicon photonics.

4. CG Power & Industrial Solutions Limited

  • Market Cap: ₹1.04 lakh crore

  • Stock Movement: -2% to ₹665.05 (BSE)

  • Recent JV: Partnership with Renesas Electronics (Japan) and Stars Microelectronics (Thailand) to build India’s first OSAT facility in Sanand, Gujarat, with ₹7,600 crore investment.

  • Production Capacity: Up to 1.5 crore semiconductor units per day, catering to automotive, consumer electronics, industrial applications, and 5G.

Outlook

With strong government support, global partnerships, and increasing investments, India’s semiconductor sector is on track to become a global powerhouse. Investors keeping an eye on semiconductor-related stocks could find significant growth opportunities as the industry scales to meet domestic and international demand.