In the interim budget, the government has allocated a total of Rs 15,500 crore for various electronics manufacturing programs in the fiscal year 2024-25. This allocation is aimed at promoting semiconductor manufacturing, the production of electronic chips, and supporting the mobile and IT hardware industry through the Production-Linked Incentive (PLI) scheme.
Notably, Rs 6,903 crore is allotted for various semiconductor projects, including fab plants and a semiconductor laboratory. The mobile PLI scheme sees an increase to Rs 6,125 crore, while the IT hardware PLI scheme receives Rs 75 crore.
Additionally, Rs 4,203 crore is designated for incentives in assembly, test, and packaging plants, and Rs 750 crore is proposed for older electronics manufacturing schemes. The capital outlay rises to Rs 1,148.25 crore, with C-DoT’s allocation reduced to Rs 500 crore.
Here are some stocks that might get the benefit.
Tata Elxsi Ltd.
Tata Elxsi is a global leader in design and technology services for the automotive, media, and healthcare sectors.
Tata Elxsi, a leading Indian provider of semiconductor services, has partnered with Renesas Electronics Corporation, a leading supplier of advanced semiconductor solutions, to establish a cutting-edge design center in Bangalore.
Tata Elxsi provides semiconductor services that include SDK and reference design solutions, AI tools and frameworks, multimedia reference frameworks, and FPGA design and development.
On Friday, the share price of the company closed 0.03 percent down at Rs 7,634 per share from its previous close of Rs 7,636.05.
Dixon Technologies (India) Ltd.
Dixon Technologies (India) Limited is India’s largest design-focused solutions manufacturer, producing consumer durables, lighting, mobile phones, and smartphones.
Dixon is involved in the semiconductor industry, and the company’s diverse portfolio includes manufacturing and design-focused solutions for consumer durables, home appliances, lighting, mobile phones, security devices, set-top boxes, wearables, and medical equipment.
On Friday, the share price of Dixon Technologies closed 1.9 percent up Rs 6,240.95 per share from its previous close of Rs 6,122.70.
Moschip Technologies Ltd.
Moschip Technologies Ltd. is a semiconductor and system design company that specializes in turnkey ASICs, mixed signal IP, semiconductor and product engineering, and Internet of Things (IoT) solutions for the aerospace and defense, consumer electronics, automotive, medical, networking, and telecommunications industries.
On Friday, the share price of Moschip Technologies Limited closed 1.8 percent down at Rs 101.40 per share from its previous close of Rs 103.35.
RIR Power Electronics Ltd.
RIR Power Electronics produces a wide range of semiconductor devices, including phase control thyristors, inverter-grade thyristors, standard recovery diodes, fast recovery diodes, high-voltage modules, diode bridge rectifiers, diode bridge modules, insulated-gate bipolar transistor modules, power modules, and more.
On Friday, the share price of RIR Power Electronics Ltd closed 1.5 percent down at Rs 780 per share from its previous close of Rs 792.35.
ASM Technologies Ltd
ASM Technologies Ltd is a leading provider of technology engineering services for semiconductor and electronics companies around the world, specializing in engineering, prototyping, software, NPI, NPD, and limited volume production.
On Friday, the share price of ASM Technologies Ltd closed 1.8 percent down at Rs 460.60 per share from its previous close of Rs 469.20.
HCL Technologies Ltd
HCL Technologies Limited is an Indian-based technology company. The company provides its services and products through three business segments: IT and Business Services (ITBS), Engineering and R&D Services (ERS), and HCLSoftware.
Taiwan’s Foxconn Technology Group and India’s HCL Group will form a joint venture (JV) to establish a semiconductor outsourced assembly and testing (OSAT) unit, with Foxconn holding 40% equity and an investment of USD 37.2 million.
On Friday, the share price of HCL Technologies Ltd closed 0.4 percent up at Rs 1,583.90 per share from its previous close of Rs 1,577.4.
Centum Electronics Ltd
Centum Electronics Limited, founded in 1993, is one of India’s largest ESDM companies. It provides a full range of design services and manufacturing of systems and subsystems for mission-critical products in the defense, space, aerospace, industrial, transportation, and medical industries.
On Friday, the share price of Centum Electronics Ltd closed 2.1 percent up at Rs 1,654.80 per share from its previous close of Rs 1,620.75.
Syrma SGS Technology Ltd
Syrma SGS Technology Limited, founded in 2004, is a Chennai-based engineering and design firm specializing in electronics manufacturing services. The company provides end-to-end services to OEMs, from product concept to volume production, including co-creation and realization.
On Friday, the share price of Syrma SGS Technology Ltd closed 0.8 percent down at Rs 579.90 per share from its previous close of Rs 584.65.
Written by Sriram KV
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