The semiconductor industry in India is witnessing substantial growth, projected to reach $64 billion by 2026, primarily fueled by advancements in the telecom and industrial sectors.
The Indian government is proactively supporting semiconductor manufacturing through various measures, including the production-linked incentive (PLI) scheme. With an allocation of over $10 billion, the PLI scheme encourages semiconductor manufacturers to produce locally.
In 2021, the government initiated the India Semiconductor Mission (ISM) with a budget of ₹76,000 crore aimed at promoting packaging and design units. Additionally, the scheme offers up to 50% fiscal support for establishing semiconductor fabrication units in India.
In the beginning of 2024, Union Minister Ashwini Vishnaw announced the approval of Tata’s semiconductor chip fabrication unit in Gujarat with an investment of approximately ₹ 500 billion. Additionally, Tata Electronics’ semiconductor assembly and packaging plant in Assam, received approval with a financial outlay of ₹ 400 billion.
During the last quarter of the previous year, approximately 30% of the new global capability centers (GCCs) established in India were focused on the semiconductor industry. This indicates a rising interest in utilizing India’s local talent for activities like front-end design, performance testing, and post-silicon validation, as per a report by Nasscom-Zinnov.
Key roles within the semiconductor value chain encompass ASIC design engineer, reliability test engineer, clean room technician, chip encapsulation specialist, PCB (printed circuit board) design engineer, RF test engineer, and thin film engineer.
In recent developments, Tesla, the world’s largest automotive company, has entered into a strategic agreement with Tata Electronics to procure semiconductor chips for its worldwide operations.
Here are a few companies that may benefit if India becomes the semiconductor hub.
ASM Technologies Ltd
On Tuesday, ASM Technologies Ltd saw its shares rise by 3.4%, trading at ₹946 per share, which was a 1.36% increase from the previous closing price. The company currently has a market capitalization of ₹1,038 crore.
ASM Technologies Limited is a leading company in design-led manufacturing, serving the semiconductor and automotive sectors. They specialize in offering 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.
Over the past six months, shares of ASM Technologies Ltd have surged by 104%, and over the last year, they have risen by 118%.
SPEL Semiconductor Ltd
On Tuesday, shares of SPEL Semiconductor Ltd surged by 5% to reach ₹121.25. The company’s shares have seen impressive growth, rising by 105% over the past six months and 154% over the last 12 months.
Spel Semiconductor Ltd is a company that in semiconductor integrated circuit (IC) assembly and testing facilities. The company provides solutions that include wafer sorting, assembly, testing, and drop-shipment services.
RIR Power Electronics Ltd
On Tuesday, shares of RIR Power Electronics Ltd surged by 5% to reach ₹1,564.25 per share. Over the past six months, the company’s shares have risen by 155%, and over the last 12 months, they have soared by 382%.
RIR Power Electronics Limited, formerly known as Ruttonsha International Rectifier Ltd, is a global semiconductor company with more than five decades of association with International Rectifier, USA, for the manufacturing of power semiconductors.
The company is based in Mumbai, India, and has a high power semiconductor manufacturing setup with a capacity to manufacture products ranging up to 9000V and 6000A.
MosChip Technologies Ltd
On Tuesday, shares of MosChip Technologies Ltd surged by 5.2% to reach ₹102.25 per share. Over the past six months, the company’s shares have risen by 12%, and over the last 12 months, shares have soared by 52%.
Moschip Technologies Ltd is a semiconductor and system design firm that specializes in turnkey ASICs, Mixed Signal IP, semiconductor & product engineering, and Internet of Things (IoT) solutions for aerospace & military, consumer electronics, automotive, medical, and networking & telecommunications.
Kaynes Technology India Ltd
On Tuesday, shares of Kaynes Technology India Ltd surged by 2.7% to reach ₹2,523.90 per share. Over the past 12 months, the company’s shares have risen by 156%.
Kaynes Technology India is investing ₹ 2,800 crore in setting up a semiconductor OSAT (outsourced semiconductor assembly and test) manufacturing and compound semiconductor facility in Telangana.
The facility will be set up by Kaynes Semicon, a subsidiary of Kaynes Tech, for its foray into OSAT/ATMP (assembly, testing, marking and packaging) services.
Written by Omkar Chitnis
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
