Which Companies Manufacture Semiconductor Components in India?

The digital revolution has cast a spotlight on an industry that was once largely overlooked: semiconductors.

These tiny yet incredibly powerful components are the lifeblood of modern technology, powering everything from smartphones to supercomputers.

These chips are the driving force behind AI's groundbreaking advancements, from powering your smartphones to enabling autonomous vehicles.

While the global semiconductor landscape has been dominated by a few giants, India is emerging as a promising player in this high-stakes arena.

The country's burgeoning tech ecosystem, coupled with government initiatives to bolster domestic manufacturing, has ignited investor interest in the semiconductor sector.

As India strives to reduce its reliance on imports and become a global electronics hub, the stage is set for domestic semiconductor companies to shine.

Let's look at the companies that manufacture semiconductor components in India.

#1 Tata Elxsi

First on the list is Tata Elxsi.

Tata Elxsi specializes in providing hardware and software solutions for the design and verification of semiconductor products. These services are crucial in developing integrated circuits, system-on-chip (SoC) designs, and other semiconductor components.

It plays a significant role in fostering growth and innovation within the semiconductor and wireless communication sectors in the country.

Tata Elxsi is among the world's leading providers of design and technology services across various industries, including automotive, media, communications, and healthcare.

It accelerates the development of lifecycles of semiconductor and device companies by providing platform software, system architecture, and design.

In May 2024, Tata Elxsi collaborated with Arm, the global semiconductor designs and software platform provider, to offer advanced solutions on the latest Arm processor.

This collaboration will help automotive OEMs and Tier-1s fast-track their transition to software-defined vehicles (SDVs).

Further, the company has a tie-up with Renesas Electronics Corporation, a premier supplier of advanced semiconductor solutions, to set up a state-of-the-art design centre in Bangalore. This centre will develop targeted solutions for electric vehicles (EVs).

Tata Elxsi's semiconductor services focus on SDK and reference design solutions, AI tools and frameworks, multimedia reference frameworks, and FPGA design and development.

This comprehensive approach ensures that Tata Elxsi remains at the forefront of the semiconductor industry, driving innovation and technological advancements.

For more details, see the Tata Elxsi company fact sheet and quarterly results.

#2 HCL Tech

Next on the list is HCL Tech.

HCL Technologies is a significant player in the semiconductor industry, offering a comprehensive range of services and solutions across the semiconductor value chain.

The company has established itself as a leader in semiconductor engineering services, boasting a strong track record of partnering with top semiconductor OEMs.

HCL Technologies provides end-to-end engineering services, encompassing design, verification, manufacturing, and testing phases.

The company's expertise spans lithography, deposition, implantation, etching, inspection, metrology, post-silicon validation, and automated test equipment.

The company's deep domain knowledge, coupled with its large pool of engineers, positions it as a preferred partner for semiconductor companies.

HCL Technologies provides IT services to semiconductor and wireless communication companies. These services include application development, IT infrastructure management, and digital transformation. It has a global presence and works with clients worldwide, including semiconductor and wireless communication companies.

In February 2024, HCL Technologies expanded its longstanding collaboration with Intel Foundry to co-develop customized silicon solutions for semiconductor manufacturers, system OEMs (Original Equipment Manufacturers), and cloud service providers to enhance foundry services.

Adding to this in March 2024, HCL Tech expanded its partnership with the semiconductor intellectual property (IP) cores provider Computer Aided Software Technologies (CAST) Inc. for customised chips.

Further, the company is exploring opportunities in setting up a semiconductor wafer fabrication unit and an outsourced semiconductor assembly and test (OSAT) facility.

These initiatives underscore HCL's commitment to participating in the semiconductor value chain and contributing to India's semiconductor ecosystem.

By combining its engineering prowess with manufacturing ambitions, HCL Technologies is well-positioned to capitalize on the growing semiconductor market and become a key player in shaping the future of the industry.

For more details, see the HCL Technologies company fact sheet and quarterly results.

#3 Dixon Technologies

Next on the list is Dixon Technologies.

Dixon Technologies, founded in 1993 has been the leader in the Electronic Manufacturing Services (EMS) industry. Their diversified portfolio includes products like consumer electronics, home appliances, lighting products, mobile phones, CCTVs, wearables, and refrigerators.

The company is the largest manufacturer of LED TV screens in India and works with brands like Samsung, Xiaomi, Panasonic, OnePlus, Philips, Havells, etc.

Dixon Technologies has recently started working on laptop, mobile, and ICT hardware, which relies heavily on semiconductors.

So why does this come under the semiconductor industry?

It is part of the EMS industry which means it acquires its semiconductor components from foreign countries and assembles phones and other appliances that require semiconductors.

On 7 June 2024, Dixon Technologies entered into a joint venture agreement with HKC Corporation Limited, a semiconductor display panel manufacturer, to undertake the manufacturing of Liquid Crystal Modules (LCM).

Dixon is also a key beneficiary of the government's Production Linked Incentives (PLI) scheme for the electronics segment.

Dixon Technologies has various partnerships and subsidiaries with various investments underway to start full-fledged operations for the semiconductors.

Dixon has a JV with Japanese company Rexxam for manufacturing Printed Circuit Boards (PCBs). Rexxam deals in the development, design, manufacturing, and marketing of electronic products, peripheral devices of semiconductor production equipment, etc.

Currently, it's building a new facility in Noida to make 1.3 million laptops for Taiwanese PC maker Acer.

Through its focus on semiconductor-related manufacturing and assembly, Dixon Technologies is well-positioned to capitalize on the growing semiconductor market.

For more details, see the Dixon Technologies company fact sheet and quarterly results.

#4 CG Power

Next on the list is CG Power.

CG Power, also known as Crompton Greaves Power, specialising in electrical equipment and engineering solutions is making a significant foray into the semiconductor industry through its plans to jointly build an outsourced semiconductor assembly and test facility (OSAT) in India.

It will be in partnership with Japanese Renesas Electronics Corporation and Thailand-based Stars Microelectronics.

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the project of the JV under India's semiconductor scheme on 29 February 2024.

While CG Power is a part of Tube Investments of India and the Murugappa Group, Renesas is a supplier of advanced semiconductor solutions. Stars Microelectronics (Thailand) Public is an OSAT provider.

The JV will be 92.3% owned by CG, with Renesas and Stars Microelectronics holding equity capital of approximately 6.8% and 0.9%, respectively. The JV plans to invest Rs 76 billion (bn) over a five-year period, which will be financed through a mix of subsidies, equity, and potential bank borrowings as required.

Renesas will provide advanced semiconductor technology and expertise. Stars Microelectronics will provide both technology for legacy packages and training and enablement.

The manufacturing facility will be set up in Sanand, Gujarat, with a capacity that will ramp up to 15 million (m) units per day.

Apart from this, the Gujarat government has allotted 188 acres of land to Tata Group and CG Power as part of its ambition to make the state India's semiconductor hub.

The state government has earmarked around 160 acres in Dholera for Tata Group to set up the country's first mega semiconductor fabrication plant at an estimated investment of Rs 910 bn.

CG Power has been offered 28 acres in Sanand.

These ventures complement the Rs 225.2 bn chip assembly plant being constructed by Micron, a US-based memory chip maker, also located in Sanand.

Going forward, the company plans to strengthen its foothold in the semiconductor space.

For more details, see the CG Power & Industrial company fact sheet and quarterly results.

#5 Vedanta

Next on the list is Vedanta.

In February 2022, Vedanta announced its plans to set up a semiconductor plant in a joint venture with Foxconn (Hon Hai Precision). The company was among the first few participants in the government's PLI scheme.

This joint venture marked Vedanta's second attempt to invest in the country's semiconductor and display ecosystem.

Nearly five years prior, the company had announced and later abandoned, its plan to set up a display manufacturing unit with an investment of US$ 10 bn.

In July 2023, the Vedanta group stated it would acquire the semiconductor and display businesses from its sister concern, Twin Star Technologies Ltd. This move positioned Vedanta as the country's first company in the integrated semiconductor and display fab business.

Additionally, the group owns AvanStrate, the fourth-largest manufacturer of glass substrates in the world, which is used in the packaging of semiconductors.

Over the past decade, Vedanta has simplified its structure and consolidated its various businesses into one listed entity under the Vedanta umbrella. However, in 2024, the company decided to split its businesses into separate entities.

Chairman Anil Agarwal recently reiterated Vedanta's commitment to setting up a semiconductor manufacturing unit, dismissing rumours that the government may have deprioritized the company's plan to enter the sector.

One key concern for Vedanta is its high debt. Recent reports indicate that Vedanta is struggling to secure financial backing to facilitate the establishment of the unit.

Additionally, Agarwal's representatives have met with large financiers from the Middle East, Singapore, and the US over the past three months to secure funding commitments, but these efforts have yet to bear fruit.

Also, the progress of Vedanta's semiconductor business will depend on the company identifying a new technology partner after Foxconn's exit.

For more details, see the Vedanta company fact sheet and quarterly results.

#6 L&T

Next on the list is Larsen & Toubro.

L&T has ventured into the design of fabless semiconductor chips by setting up a wholly-owned subsidiary with an investment of Rs 8.3 bn.

Given the global shortage of semiconductor chips, L&T's entry into designing chips for the automobile and industrial sectors is a timely and strategic move.

To further strengthen its position, the company has established L&T Semiconductor Technologies (LTSCT), a wholly-owned subsidiary focused on fabless semiconductor chip design and product ownership.

Unlike other Indian conglomerates venturing into semiconductor manufacturing, L&T has adopted a different approach by concentrating on the design and development of specialized chips rather than manufacturing them.

This strategy leverages L&T's engineering expertise and focuses on high-value-added activities.

In its initial phase, L&T Semiconductor Technologies plans to focus on semiconductor IC design. This will be followed by the development of a Gallium Nitride (GaN) and Silicon Carbide (SiC) fabrication facility in the second phase.

According to industry sources, during phase one, L&T Semiconductors will concentrate on the design and development of niche ICs for targeted markets and outsource semiconductor manufacturing and packaging.

In phase two, once sufficient chip sales and the fabs are ready for effective production, L&T may set up its fabs, focusing on high-power devices like gallium nitride and silicon carbide.

L&T on 9 July 2024 announced that its wholly-owned subsidiary - L&T Semiconductor Technologies Ltd., has signed a share purchased agreement to acquire a 100% stake in SiliConch Systems Pvt. Ltd.

L&T expects the acquisition to add Intellectual Property (IP), engineering skillsets and design expertise to strengthen its presence in the fabless semiconductor business, thereby aligning with the growth strategy of L&T Semiconductor Technologies.

The acquisition is expected to close by 15 September 2024.

L&T Semiconductor has already begun conversations with fabs like TSMC and Global Foundries. On the customer side, the company is seeing active interest from various players in India and overseas.

For more details, see the L&T company fact sheet and quarterly results.

#7 Bharat Electronics

Next on the list is Bharat Electronics.

Bharat Electronics Limited (BEL), a stalwart in India's defence electronics sector, has a historical connection to the semiconductor industry.

The company was among the early entrants into semiconductor manufacturing in India, producing germanium and silicon transistors in the 1960s.

However, due to factors such as global competition and technological advancements, BEL phased out its semiconductor fabrication operations.

Despite exiting the semiconductor manufacturing business, BEL continues to be a significant consumer of these components. The company spends Rs 15-18 bn importing semiconductors for its defence electronics products.

Recognising the strategic importance of semiconductors, BEL has expressed interest in re-entering the semiconductor value chain.

For this, BEL has signed an MoU with the Indian Institute of Technology, Mandi, for cooperation in research, technology, and product development for semiconductors, quantum technologies, and drones.

For more details, see the Bharat Electronics company fact sheet and quarterly results.

#8 Hitachi Energy

Next on the list is Hitachi Energy.

Hitachi Energy is a global leader in the power sector renowned for its innovative solutions in grid infrastructure, power generation, and electrification.

While primarily known for its power systems, the company has made significant strides in the semiconductor domain, particularly in power semiconductors.

The company has made a significant stride in semiconductor technology by successfully producing its first 300 mm wafer for IGBTs. This breakthrough marks a pivotal moment for the company, as it positions them at the forefront of power semiconductor innovation.

Applications for IGBT include variable frequency drives (VFD), uninterruptible power supply (UPS) systems, electric cars, trains and air conditioners, among others.

For more details, see the Hitachi Energy company fact sheet and quarterly results.

#9 MIC Electronics

Next on the list is MIC Electronics.

MIC Electronics is a global leader in the design, development & manufacturing of high-end telecom equipment.

The company recently announced that it has developed a 42V/3A EV battery charger for e-cycles and two-wheelers.

It is also developing high-power rating EV battery chargers for e-cycles and two-wheelers.

The company is directly or indirectly also involved in the semiconductor industry. Although it is not setting up a big facility for the same, it plays a key role on the tech side.

The company specialises in semiconductor packaging and testing solutions.

MIC Electronics has received a slew of orders in the past six months, with the majority of orders catering to the railways and for semiconductor chips.

Think of small orders like the replacement of IP-based integrated passenger info at stations.

It is expanding towards areas to identify profitable business lines beyond its core operations in the Indian Railways.

Going forward, the company plans to focus on existing businesses to turn profitable.

For more details, see the MIC Electronics company fact sheet and quarterly results.

#10 Moschip Technologies

Next on the list is Moschip Technologies.

Moschip Technologies, established in 1999, stands out as a leading company in the semiconductor industry.

Moschip has designed and manufactured over 20 products and shipped more than 10 m chips worldwide.

MosChip excels in providing turnkey ASIC and IP design services, with a strong focus on mixed-signal-edge device SoC ASIC solutions.

MosChip Technologies offers a wide range of services in Semiconductors and Embedded Systems & Software Design.

Moschip has established strategic partnerships with leading foundries such as TSMC, UMC, Global Foundries, and Tower Jazz.

This collaboration ensures that MosChip has access to the latest technologies and manufacturing processes, strengthening its position as a leader in the semiconductor industry.

In FY22, the company made significant progress with a high-speed SerDes IP portfolio and design wins with tier-1 customers. It experienced strong growth with existing customers for design services. It also acquired new customers in North America and helped them transition from 2G to 4G.

With Softnautics Inc.'s acquisition in FY23, the company strengthened its Embedded System Design capabilities.

Softnautics has established strong customer relationships with top-tier companies across North America and will add 185+ employees to the current MosChip talent pool across various domains.

The company, on 14 March 2024, partnered with Tenstorrent for the advancement of RISC-V solutions.

The partnership focuses on the design and development of Tenstorrent's RISC-V solutions, with MosChip contributing its experience in Physical Design, DFT, Verification, and RTL Design services.

Furthermore, MosChip has completed over 200 multi-million gate ASICs, which will play a crucial role in the development of Tenstorrent's RISC-V solutions.

In June 2024, it received a Rs 5.1 bn contract from the Center for Development of Advanced Computing (CDAC) for the development of high-performance computing Soc (System on a Chip).

The company is focusing on research, development, and technology advancements, particularly in embedded software and AI/ML domains.

In the future, the company aims to broaden its scope across various industries and international markets. Additionally, it intends to emphasise artificial intelligence and machine learning to provide design support for Indian semiconductor firms.

For more details, see the Moschip Semi company fact sheet and quarterly results.

#11 Rajesh Exports

Next on the list is Rajesh Exports.

Rajesh Exports is the only company in the world with a presence across the entire value chain of gold - from refining to retailing. Rajesh Exports is the largest processor of gold in the world, processing around 35% of gold produced.

In 2022, the company agreed to invest US$3 bn in Telangana to set up the country's first electronic display plant.

Rajesh Exports has been an applicant for the US$ 10 bn incentive plan to push companies to set up semiconductor and display operations in India.

This move aligns with the government's push for self-reliance in electronics manufacturing and aims to capitalize on the growing demand for displays in various applications.

Further, the company, which has no prior experience in electronics manufacturing, is investing in Elest, a unit it incorporated for diversifying into making products such as displays and electric vehicles (EVs).

In January 2023, Rajesh Exports signed an agreement with the union ministry and Karnataka government for a 5 GW lithium-ion cell factory.

#12 ABB India

Next on the list is ABB India.

ABB India, a prominent player in the power and automation sector, plays a pivotal role in supporting the semiconductor industry's operations, though it's not directly involved in semiconductor manufacturing.

The company offers essential infrastructure and technologies that ensure the seamless functioning of semiconductor fabrication facilities.

ABB's contribution to the semiconductor ecosystem is multifaceted.

Its power protection solutions, encompassing UPS systems and active voltage conditioners, safeguard semiconductor manufacturing processes from power fluctuations, preventing costly downtime and ensuring uninterrupted operations.

Additionally, ABB's precision measurement solutions for wet processes in semiconductor manufacturing enhance production yield and minimise wafer damage.

The company's automation and robotics solutions streamline production processes, increasing efficiency and accuracy. Furthermore, ABB's expertise in power distribution and electrification provides the robust electrical infrastructure necessary for semiconductor facilities.

For more details, see the ABB India company fact sheet and quarterly results.

#13 Kaynes Technology

Next on the list is Kaynes Technology.

Kaynes Technology is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturer in India.

The company has garnered over three decades of expertise in providing comprehensive Electronic System Design and Manufacturing (ESDM) services.

KTIL caters to a diverse range of industries, including automotive, industrial, aerospace and defence, Internet of Things (IoT), Information Technology (IT), and more.

In November 2023, Kaynes Technology raised Rs 14 bn to set up a semiconductor OSAT (outsourced semiconductor assembly and test) manufacturing and compound semiconductor facility in Telangana.

With an investment of Rs 28 bn, the facility is set to occupy a 40-acre plot in the Ranga Reddy district of Telangana.

This facility is designed to be a world-class plant, incorporating state-of-the-art technology and machinery.

The OSAT will be established under the umbrella of Kaynes Semicon, a subsidiary specifically created by Kaynes Technology to spearhead its entry into the OSAT/ATMP (assembly, testing, marking, and packaging) services.

Additionally, Kaynes Semicon will collaborate with IIT Bombay to establish an R&D centre focused on package research.

Looking beyond the semiconductor domain, Kaynes Technology is poised for substantial growth by reinforcing its footprint in the smart meters and aerospace industries.

The company's substantial order book, valued at more than Rs 30 bn, will be executed over the next 18-20 months, indicating a promising revenue trajectory.

For more details, see the Kaynes Technology company fact sheet and quarterly results.

#14 SPEL Semiconductor

Next on the list is SPEL Semiconductor.

SPEL Semiconductor is engaged in offering electronic integrated circuits (ICs). Its products are used mostly in cell phones, computers, notebooks, and personal digital assistants.

Its facility, Natronix, is India's first and only semiconductor IC assembly & test facility.

The company also does semiconductor packaging.

Packaging is an essential part of semiconductor manufacturing and design. It's usually done by an outsourced semiconductor assembly and test (OSAT) vendor.

It affects power, performance, and cost on a macro level and the basic functionality of all chips on a micro level. They specialise in assembly and testing processes, which are part of the back end of semiconductor manufacturing.

As semiconductor production booms in the country, the company is set to benefit from being the only OSAT in India and from the higher demand for assembly and testing services.

The company's existing customers are some of the biggest integrated device manufacturers (IDMs) and fabless companies in the US, Asia, and Europe.

The company aims to leverage the global chip shortage to drive growth. Additionally, it intends to prioritise advanced packaging technologies to penetrate new markets.

Looking ahead, the company is keen on entering the IC design sector. Furthermore, it plans to enhance its capacity and innovate new products.

For more details, see the SPEL Semiconductor company fact sheet and quarterly results.

#15 Ami Organics

Next on the list is Ami Organics.

Ami Organics has strategically positioned itself as a significant player in the burgeoning semiconductor industry.

While primarily known for its expertise in speciality chemicals and pharmaceuticals, the company has made calculated moves to diversify its portfolio and capitalize on the high-growth semiconductor sector.

This strategic shift is underpinned by organic growth and strategic acquisitions.

The acquisition of Baba Fine Chemicals marked a pivotal entry into the high-barrier semiconductor space.

Baba Fine Chemicals specializes in custom synthesising and manufacturing critical intermediates essential for semiconductor production, such as photoresists, anti-reflective coatings, and photo acid generators.

This acquisition significantly enhanced Ami Organics' product portfolio and technological capabilities in the semiconductor domain.

Moreover, Ami Organics has independently developed electrolyte additives for lithium-ion batteries, a crucial component in the semiconductor value chain.

These additives optimize battery performance and lifespan, positioning the company as a potential supplier to the burgeoning electric vehicle and electronics industry.

The company's deep-rooted expertise in speciality chemicals, characterized by complex synthesis and process development, serves as a robust foundation for its semiconductor endeavours.

This knowledge base allows Ami Organics to meet the stringent purity and consistency requirements of the semiconductor industry.

For more details, see the Ami Organics company fact sheet and quarterly results.

#16 ASM Technologies

Next on the list is ASM Technologies.

ASM Technologies Limited is a leading company in design-led manufacturing, serving the semiconductor and automotive sectors. The company specialises in consulting and product development services for engineering and product research and development (R&D).

ASM Digital Engineering focuses on engineering and digital solutions, crafting products tailored to customer needs with a focus on improving reliability and enhancing productivity.

It has a 50-50 joint venture (JV) with HHV group, slated to be one of India's state-of-the-art semiconductor-focused equipment manufacturing facilities.

The facility will include designing and manufacturing semiconductor tools, sub-systems, and system components and providing field support. The management considers it a key growth vertical.

In November 2023, the company acquired UK-based Semcon Engineering UK Ltd to improve its business in foreign lands.

ASM Technologies has also ventured into a joint venture with Hind High Vacuum (HHV) to manufacture semiconductor equipment in India, highlighting its commitment to local manufacturing and technology development.

With secured funds and plans for further capital infusion, ASM Technologies aims to enhance its capabilities, accelerate technological developments, and strengthen its global presence in the semiconductor and solar industries.

For more details, see the ASM Technologies company fact sheet and quarterly results.

#17 Praj Industries

Next on the list is Praj Industries.

Praj Industries is primarily known for its expertise in bio-energy, high-purity water systems, and critical process equipment. While not a direct semiconductor manufacturer, the company plays a crucial role in supporting the semiconductor industry's operations.

Praj's High Purity Systems division is particularly relevant to the semiconductor sector. The company provides cutting-edge technology and systems for producing ultra-high purity water, an essential component in semiconductor manufacturing.

Praj secured its first order in the semiconductor sector for ultra-high purity water in FY23.

This focus on high-purity water solutions aligns with the stringent requirements of the semiconductor industry, where even trace impurities can significantly impact chip performance.

Praj's expertise in water treatment and purification makes it a valuable partner for semiconductor manufacturers seeking reliable and high-quality water supplies.

Its foray into the semiconductor industry through high-purity water systems demonstrates the company's strategic focus on expanding its market reach and tapping into high-growth sectors.

Despite the robust growth in the business, the company has no debt on its books, which is highly commendable.

Moving forward, the company aims to enhance its presence even further.

For more details, see the Praj Industries company fact sheet and quarterly results.

#18 Va Tech Wabag

Next on the list is Va Tech Wabag.

VA Tech Wabag is a leading global player in the water technology space, providing comprehensive solutions for water and wastewater treatment, desalination, and industrial water treatment.

While not directly involved in semiconductor manufacturing, the company plays a crucial role in supporting the industry's operations.

Semiconductor manufacturing requires an exceptionally high level of water purity. Any impurities can significantly impact the quality of the chips produced. This is where Va Tech Wabag comes in. The company specializes in providing ultra-pure water treatment solutions, essential for semiconductor fabrication processes.

By offering advanced water treatment technologies, Va Tech Wabag helps semiconductor manufacturers maintain the stringent water quality standards required for their operations. This is crucial for ensuring the reliability and performance of the chips produced.

Wabag is currently exploring opportunities in the semiconductor and bio-CNG areas.

A few years ago, Wabag did a project in the Middle East to supply pure water to one of the semiconductor manufacturing facilities.

Apart from semiconductors, the company is also taking part in the green hydrogen revolution. The company is in discussions with hydrogen developers to collaborate as their water partner. There is a lot of potential here, given the government's focus on green hydrogen.

It already supplies clean water to the semiconductor industry and plans to expand further and remain a dominant player globally.

Given the growing demand for clean water and wastewater treatment around the globe, Va Tech Wabag has a fair chance of doing well going forward.

For more details, see the VA Tech Wabag company fact sheet and quarterly results.

#19 RIR Power Electronics

Next on the list is RIR Power Electronics.

RIR Power Electronics was established by Mr Ruttonsha in technical collaboration with International Rectifier Corporation US. In 2000, it set up its Export Oriented Unit (EOU). In 2009, Orient Semiconductors was merged into RIR Power.

Today RIR is a market leader in Power Electronics. It has over 53 Years of experience and operations in 10+ countries. It is the only company in the private sector to manufacture semiconductor devices right from the diffusion stage.

RIR's product portfolio includes low-power to high-power devices and IGBT Modules that find applications in welding, elevators, battery charges, and more.

In November 2023, RIR Power Electronics received official approval from the government of Odisha for a substantial investment of Rs 5.1 bn.

This investment is earmarked for the establishment of a state-of-the-art facility for the manufacturing, fabrication, and packaging of Silicon Carbide (SiC) devices in Info Valley, Khordha, Odisha.

SiC is recognised as a cutting-edge semiconductor material, offering advantages over traditional silicon semiconductors. These advantages include enhanced power handling capabilities, increased efficiency, and greater durability.

SiC devices have applications, particularly in electric vehicles, renewable energy systems, and industrial automation.

The forthcoming facility in Odisha marks a significant milestone for RIR Power Electronics as it represents the company's first manufacturing unit in India.

The company continues to focus on the high-power semiconductor devices business and foresees ample opportunities for growth in export markets.

Going forward, it plans to invest in SiC technology for growth.

For more details, see the Ruttonsha Int company fact sheet and quarterly results.

#20 Surana Telecom & Power

Last on our list is Surana Telecom & Power.

Surana Telecom and Power, a leader in semiconductor-based telecom and power products, is well-positioned to cater to the escalating demand for these products in India.

While specific details about the company's current activities in the semiconductor space are limited, it is known that Surana Telecom and Power have some direct or indirect relations to the semiconductor industry.

The company's involvement in semiconductor-based products positions it to potentially benefit from the growth and technological advancements in this sector.

The company's established expertise in telecom and power products, combined with the potential for increased governmental support and incentives, makes Surana Telecom and Power a noteworthy player to watch in the semiconductor industry.

For more details, see the Surana Tele. & Power company fact sheet and quarterly results.

How to Invest in Semiconductor Stocks

• Invest in Semiconductor Ecosystem Builders: Look for companies that are establishing or expanding the semiconductor ecosystem in India. These could be firms involved in setting up manufacturing facilities, research centers, or joint ventures in the semiconductor space.
• Consider Direct or Indirect Exposure: Invest in companies with direct involvement in semiconductor manufacturing or those that benefit indirectly from the semiconductor industry. This includes firms that use semiconductors in their products or services.
• Focus on Raw Materials and Design Services: Invest in companies providing raw materials, design services, or technology solutions to the semiconductor industry. This includes firms involved in semiconductor equipment, materials, or intellectual property.
• Adopt a Long-Term Investment Approach: Recognize that the semiconductor industry is a structural megatrend with long-term growth potential. Avoid short-term investment strategies and focus on long-term opportunities to benefit from sustained industry growth.
• Monitor Industry Trends and Government Policies: Stay informed about industry developments, technological advancements, and government initiatives, such as the Production Linked Incentive (PLI) scheme, which could impact the semiconductor sector's growth and investment potential.

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Conclusion

In 2023, the Indian semiconductor industry was valued at US$ 34.3 bn and is expected to reach US$ 100.2 bn by 2032, driven by an increasing demand for smartphones, wearables, automotive parts and computers.

To reduce this dependence on imports of semiconductors, the Ministry of Electronics and Information Technology (MeitY) has launched the India Semiconductor Mission (ISM) with a US$ 10 bn commitment.

This includes incentives for manufacturing and the Design Linked Incentive (DLI) scheme to support semiconductor startups.

Additionally, the government's 'Make in India' initiative and the Production Linked Incentive (PLI) scheme offer incentives to establish semiconductor manufacturing facilities in India.

While the semiconductor industry offers a compelling opportunity due to its integral role in advancing technology, it is crucial to understand the associated risks before making investment decisions.

First, semiconductor stocks in India can be highly volatile due to changes in demand, technological advancements, and market trends.

This volatility makes it challenging to predict future returns.

Additionally, the Indian semiconductor market is highly competitive, with numerous companies competing for market share.

This competition often results in price wars and reduced profit margins, ultimately negatively impacting stock prices.

Moreover, semiconductor manufacturing industries are cyclical, meaning they go through periods of growth and decline.

This cyclicality adds to the uncertainty of investing in semiconductor stocks in India.

Therefore, it is crucial to carefully assess these risks and consider diversifying your investment portfolio before buying semiconductor shares.

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