Semiconductor stocks 2024: TOP shares to invest in India - LIST

semiconductor stocks 2024: top shares to invest in india – list | cg power bharat electronics

Semiconductor stocks 2024: Semiconductor stocks in India are sparking a lot of interest among investors lately, and for good reason. With technology advancing and everything going digital, these stocks are riding a wave of rapid growth. Semiconductors are what power our smartphones and the electronic devices we use in our day-to-day life.

Semiconductors are always in demand, and especially with the rise of AI and 5G technologies, the demand is further anticipated to increase. However, despite India’s prowess in software and technology, it heavily depends on imports. Not surprisingly, India is heavily dependent on imports for its semiconductor needs, sourcing from countries like China, Taiwan, South Korea, and Singapore.

Semiconductor Manufacturing: India’s BIG Aspirations

The Indian government has started working on a huge new package over and above the Rs 76,000-crore incentives already given out, a Times of India (TOI) report said on April 29. The 76,000-crore incentive package was launched in December 2021 to support companies making semiconductors and investing in them. That amount has been nearly exhausted, necessitating a fresh boost for India’s big chip plan.

The new package will “in all likelihood be much bigger than the previous one”, the ToI report said, adding that the announcement to this effect will be made after a new government takes office. This package is going to be one of the key agenda for the new government and it will be done on a priority basis, the report said citing sources. The sources also told the newspaper that many new proposals have come in for semiconductors. Some of the proposals are at an advanced stage and would hence require decisions from the Centre in terms of incentives, the report said.

The government currently provides fiscal support for up to 50 per cent of a project’s cost to eligible display and semiconductor fabricators.

India had faced challenges in securing viable proposals for semiconductor manufacturing despite years of effort. However, a significant breakthrough occurred when American Micron established a Rs 22,500-crore testing and packaging unit in Gujarat in June last year.

Following this milestone, approvals were granted for three projects totaling nearly Rs 1.3 lakh crore in February of this year, accordin to an Economic Times (ET) report. These projects include Tata Electronics’ Rs 91,000-crore initiative to establish India’s first semiconductor fabrication unit in collaboration with Taiwanese Powerchip Semiconductor Manufacturing Corp in Dholera, Gujarat; Tata’s Rs 27,000-crore Semiconductor Assembly and Test (TSAT) unit in Morigaon, Assam; and CG Power’s Rs 7,600-crore project in partnership with Japanese Renesas Electronics and Thailand’s Stars Microelectronics.

According to reports, the government has received new proposals that are currently in advanced stages of discussion. Among these proposals is a plan for a display fab unit, India’s first, by Japanese Sharp, potentially attracting investments of up to Rs 40,000 crore. Additionally, Israel’s chipmaker Tower Semiconductors has proposed an investment plan worth Rs 90,000 crore for operations in India.

Top Semiconductor Stocks To Invest In India – LIST

For investors, this makes the semiconductor sector in India not just exciting, but full of potential for growth and adds one more sector to diversify their equity investments.

Here’s a list of semiconductor companies listed on Indian stock exchanges.

CG Power and Industrial Solutions: Murugappa Group company CG Power and Industrial Solutions early this year in March kicked off the construction work for its Rs 7,000 crore Outsourced Semiconductor Assembly and Test (OSAT) facility in Gujarat. The company has formed a subsidiary, CG Semi Private Ltd, for the above joint venture (JV) project. The JV project is in partnership with Renesas Electronics Corporation and Stars Microelectronics (Thailand) Public Co. Ltd.

Bharat Electronics (BEL): A major Indian defence electronics company under the Ministry of Defense, BEL specialises in designing, manufacturing, and supplying advanced electronics systems. From radar and sonar to communications equipment and weapon systems, BEL significantly contributes to enhancing India’s defence capabilities and self-reliance in electronics technology. BEL manufactures over 400 types of electronic products and systems for the Indian Armed Forces. Besides, it has diversified into various areas like homeland security solutions, smart cities, space electronics, including integration, etc.

Hitachi Energy India: Hitachi Energy India, formerly known as ABB Power Products and Systems India Limited (APPSIL), was founded in Bengaluru on February 19, 2019. The company is a major player in the power technology realm, renowned for its diverse energy technology offerings. The company offers a wide array of products and solutions, ranging from asset and work management to communication networks, cooling systems, energy storage, generators, circuit breakers, semiconductors, instrument transformers, surge arresters, and more. In addition, it provides services like electric grid installation, asset assessment and security, maintenance, upgrades, repairs, and more.

HCL Technologies: Established in 1976, HCL Technologies is a global IT and consulting firm. It specialises in offering various services, including software development, business process outsourcing, and IT infrastructure solutions. Recently, the company made significant investments in India, particularly in an Outsourced Semiconductor Assembly and Test (OSAT) plant located in Sanand, Gujarat. With a total investment of US$ 825 million, the project’s cumulative investment amounts to US$ 2.75 billion.

Vedanta: Established in 1965, Vedanta is a renowned global natural resource company with diversified operations across various segments, including aluminium, copper, power, iron ore, lead, silver, zinc, oil, and gas. Recently, the company has made significant strides by finalising a technology partnership with Taiwanese firm Innolux. Moreover, Vedanta is on the brink of sealing another promising partnership for semiconductor manufacturing.

Moschip Technologies: Moschip Technologies, established in 1999, is a company specialising in semiconductor and system design services. The company focuses on various areas such as mixed-signal IP, Turnkey ASICs, IoT solutions, semiconductor and product engineering. The company’s services cater to a wide range of sectors including automotive, medical, networking and telecommunications, consumer electronics, aerospace, and defense.

Ruttonsha International Rectifier: Ruttonsha International Rectifier, founded in 1969, specialises in manufacturing power semiconductors. The company has over five decades of association with International Rectifier, USA.

SPEL Semiconductor: SPEL Semiconductor Ltd, founded in 1984, is India’s first Semiconductor IC assembly and test facility provider.

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