Understanding India’s semiconductor industry
India is still building its semiconductor ecosystem. The industry has received a major push over the last few years. The government approved multiple semiconductor projects under the Semicon India Programme. By early 2026, 10 semiconductor projects with proposed investments of around ₹1.6 lakh crore have been approved. This includes semiconductor fabs and packaging units.
The push became stronger in 2026 with India Semiconductor Mission 2.0 (Semicon 2.0). The programme focuses on areas such as chip design, manufacturing, packaging, equipment, materials and research.
In July 2026, the Union Cabinet approved Semicon 2.0 with a total outlay of ₹1,27,500 crore. This has created new opportunities for companies across the semiconductor value chain. However, this doesn’t mean that all semi conductor stocks will perform in the same way. Their businesses and exposure are different.
Overview of top semi conductor stocks
It is important to understand that not every company called a semiconductor stock actually makes chips. For example, MosChip works mainly in chip design and silicon engineering, CG Power does semiconductor packaging, while Tata Elxsi provides engineering solutions for the semiconductor industry.
Here’s a quick overview of 5 semi conductor stocks linked closely to the industry:
Understanding India’s semiconductor industry
India is still building its semiconductor ecosystem. The industry has received a major push over the last few years. The government approved multiple semiconductor projects under the Semicon India Programme. By early 2026, 10 semiconductor projects with proposed investments of around ₹1.6 lakh crore have been approved. This includes semiconductor fabs and packaging units.
The push became stronger in 2026 with India Semiconductor Mission 2.0 (Semicon 2.0). The programme focuses on areas such as chip design, manufacturing, packaging, equipment, materials and research.
In July 2026, the Union Cabinet approved Semicon 2.0 with a total outlay of ₹1,27,500 crore. This has created new opportunities for companies across the semiconductor value chain. However, this doesn’t mean that all semi conductor stocks will perform in the same way. Their businesses and exposure are different.
Overview of top semi conductor stocks
It is important to understand that not every company called a semiconductor stock actually makes chips. For example, MosChip works mainly in chip design and silicon engineering, CG Power does semiconductor packaging, while Tata Elxsi provides engineering solutions for the semiconductor industry.
Here’s a quick overview of 5 semi conductor stocks linked closely to the industry:
CG Power
CG Power and Industrial Solutions made its move into the semiconductor industry in March 2024. Its semiconductor business is being built through CG Semi, a joint venture with Renesas Electronics and Stars Microelectronics.
In July 2026, CG Semi began commercial production at its OSAT facility in Sanand, Gujarat. OSAT means outsourced semiconductor assembly and test. The facility is expected to become an important part of India’s semiconductor packaging ecosystem. This makes CG Power different because it has a direct semiconductor manufacturing and packaging opportunity.
Dixon Technologies
Dixon Technologies is a major player in India’s electronics manufacturing industry. It makes products such as mobile phones, televisions, lighting products and other electronic devices. The company is also moving deeper into the electronics component value chain.
Its subsidiaries received government approval in 2026 under the Electronics Component Manufacturing Scheme for camera module sub-assembly and optical transceiver-SFP manufacturing. Dixon has also been increasing its presence in components such as display modules. This gives it exposure to the broader semiconductor and electronics ecosystem.
Tata Elxsi
Tata Elxsi is a technology and product engineering company. It works across industries such as automotive, media, communications and healthcare. The company also has a dedicated semiconductor business. Its solutions include SDK and reference design services, FPGA design and development, and embedded technologies.
Tata Elxsi’s semiconductor exposure is mainly through engineering and technology services. It is not a chip manufacturer. This makes the company an indirect semiconductor player that can benefit from the growing need for chip-related engineering and embedded technology.
ASM Technologies
ASM Technologies provides engineering and product R&D services, with a strong focus on semiconductor equipment. The company works on systems and subsystems used in semiconductor manufacturing equipment. Its capabilities cover areas such as vacuum technology, robotics, electronic motion control and gas and flow systems.
ASM also has experience working with global semiconductor equipment manufacturers. In 2026, the company received approval under the Electronics
Component Manufacturing Scheme for a proposed investment in high-precision capital equipment manufacturing. This gives ASM exposure to the equipment side of the semiconductor industry rather than just chip manufacturing.
MosChip Technologies
MosChip Technologies works in silicon and product engineering and has more than two decades of experience in semiconductor design. Its services cover areas such as chip design, verification, IP development, and silicon validation. MosChip has completed more than 600 tape-outs and works across technology nodes ranging from 180nm to 2nm.
Its semiconductor solutions are used across areas such as automotive, consumer electronics, communications and high-performance computing.
4 Things to check before buying semiconductor stocks
You shouldn’t choose semi conductor stocks just because of short-term news or someone else’s recommendation. Instead, check things like:
- Type of business: First, understand what the company does. The semiconductor industry includes different businesses, and each offers different exposure.
- Valuation: Some semi conductor stocks can trade at high valuations if investors expect strong future growth. Compare the valuation with earnings and expected growth.
- Order book: For companies working on large projects, check the order book. A strong order book can support future revenue, provided the company delivers those orders.
- Revenue growth: Look at whether sales and profits are growing. It's not necessary that all companies within an industry report strong financial results.
The bottom line
Investing in semi conductor stocks can give you exposure to the growing sector, but not all companies may benefit the same way. If you invest in one stock, you may gain if it performs well, but your risk can also be higher. For more diversification, a thematic or sectoral mutual fund can be another option.
Instead of depending on one semiconductor company, a mutual fund holds several stocks. You can explore sectoral funds on the Millions app and check their portfolios. For investing regularly, you can set up an SIP in a scheme that holds semiconductor stocks. This helps you avoid the risk of timing the market and putting all your money in at once.
