Introduction
Semiconductors are the building blocks of innovation at the centre of trends such as electric vehicles (EVs), 5G networks, and artificial intelligence, which are all driving strong demand for semiconductors. The Indian semiconductor market is currently estimated to be valued at approximately USD 45-50 billion, and forecasts suggest it will reach USD 100-110 billion by 2030. The Indian semiconductor market is being shaped by a variety of government policies, including the India Semiconductor Mission (ISM) and the Production Linked Incentive (PLI) schemes, which have created a favourable environment for investors to explore semiconductor stocks in India.
The Semiconductor Market in India
India predominantly sources semiconductors from Taiwan and China, via direct or indirect imports. Nonetheless, via initiatives such as Make in India and the ISM program, in addition to a firm USD 10 billion government commitment, the administering body appears dedicated to establishing a reliable, self-sustainable ecosystem. The Government is incentivising manufacturers and innovators, issuing new licences for chip manufacture, and assisting early emerging startups. All of these develop green economies. As an investor, maybe you will consider adding semiconductor investment in the IC industry, which satisfies demand for semiconductors in consumer electronics, and also automotive and defence applications, whilst acknowledging and understanding the global supply chain and cyclical aspects of the markets.
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Best Semiconductor Stocks to Watch In 2025
When selecting semiconductor stocks in India for your stock portfolio, select semiconductor stocks based on a high analyst rating and high market capitalisation. Provided below are a few of the best semiconductor stocks selected for 2025 based on innovation, strong fundamentals, and relevance to the semiconductor segment.
1. Bharat Electronics Limited (BEL)
Bharat Electronics Limited (BEL) is an exciting semiconductor stock with an analyst buy rating of around 85%. BEL has been involved in the electronics business since its establishment in 1954 by the Ministry of Defence, with a focus on electronic systems such as radars, communication systems, and avionics. Consider investing in BEL by examining the company's growth in civil aviation, anti-drone technology, and satellite applications. With BEL's international exports to Europe, Asia, and the Middle East, the company is still an excellent commodity for your portfolio, as it gives you access to defence companies with applications in the semiconductor space.
2. CG Power and Industrial Solutions
CG Power and Industrial Solutions has a target price of approximately 70% and is a notable manufacturer of power generation equipment and rail transport applications. CG Power was founded in 1937, initially for transformer manufacturing and similar applications, and its products are a mix aligned with semiconductors for energy-saving applications. For your portfolio, CG Power represents exposure as it is in the power conversion market and low-voltage machines that are expected to grow from infrastructure.
3. Hitachi Energy India
Formerly known as ABB Power Products, Hitachi Energy India has a buy rating of about 60%. The company has been a leader in power technology since 2019, producing energy storage systems, circuit breakers, and semiconductors for electric grids. Hitachi Energy can enhance your portfolio through its sustainable offerings, which include electric grid management products and maintenance of grid-connected assets.
4. V-Guard Industries
Kochi-based V-Guard Industries has a buy rating of 62% and manufactures electronics and consumer goods, like voltage stabilisers, cable wires, and other appliances. During the pandemic, the company made acquisitions of subsidiaries to widen its product lines and further enhance its growth story. If you are interested in consumer-driven markets based on semiconductor technology, this is another interesting company to consider.
5. Havells India
Havells India is a buy-rated stock with a 55% rating. It operates as a worldwide competitor in FMEG (Fast Moving Electrical Goods) under the banner of its brands Lloyd and Crabtree, involved in the manufacture of cables, motors, and appliances, with 90%+ of manufacturing done in-house. Its extensive dealer network and energy-efficient products make it an attractive option for you in the consumer electronics space as well.
Other Prominent Names
When considering semiconductor stocks by market capitalisation, HCL Technologies is a tech services giant that is embarking on semiconductor design, Vedanta Limited is exploring chip manufacturing, and ABB India is primarily involved in automation and power grids. Many of these stocks have a market capitalisation above INR 1 lakh crore.
Is Semiconductor Investing Right for You?
The semiconductor industry is expected to experience enormous growth, but it also comes with certain risks, including market and price volatility, changing regulatory environments, and intense competition. By conducting thorough research and consulting with financial specialists and consultants, you can align your investments with your own risk tolerance and expectations. With India's technology growth progressing, some of the best semiconductor stocks in India may present an opportunity to invest in one of the most transformative global industries.
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