The semiconductor stocks have been into a lot of focus lately in India because of the recently announced PLI Scheme. Let’s look into the PLI scheme and how it will help semiconductor companies and the economy overall.

India was facing an inadequate supply of semiconductor chips. To combat this,  the Centre sanctioned ₹76,000 crores under the production-linked incentive (PLI) scheme, under which Rs.2.3 lakh crore of incentives will be given,  to encourage the manufacturing of semiconductors within India. 

How will it help the companies?

The primary goal of introducing the scheme is to create a semiconductor ecosystem in the country. It will provide financial assistance in form of subsidies to the manufacturers of semiconductors.

This will help them bring down their production costs. In turn, the companies will be encouraged to produce more as their profits will increase. It will also allow the companies to have additional capital in the hand during these uncertain times which can be utilized for other purposes. 

Here are a few of the top semiconductor stocks in India:

Also Read: Top Semiconductor Stocks in India – Industry Overview and Companies!

How will it help the economy?

The move came when the global semiconductor industry was facing a crisis. The strategic timing will benefit the overall economy.  In fact, the government estimates that the scheme will lead to the creation of 35,000 specialized jobs apart from 1 lakh indirect employment opportunities.

In addition to that, it could also generate investments to the tune of Rs 1.7 lakh crore.

What do you think of the Semiconductor stocks and their future outlook in India? Do comment below!

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