According to industry projections, the Indian semiconductor market was valued at ~$38 billion in 2023 and is estimated to grow to around $45–50 billion during 2024-2025. By 2030, it is anticipated to expand significantly, reaching between $100 and $110 billion. While global demand for semiconductors continues to surge, the supply chain remains vulnerable due to its heavy reliance on a few geographic regions. This has highlighted the urgent need for a more geographically diversified manufacturing base.
Strategic initiatives such as recognising Electronics System Design and Manufacturing (ESDM) as a core sector under the Make in India scheme, along with the launch of the India Semiconductor Mission and the Semicon India program, have played a crucial role in building a supportive ecosystem for the semiconductor industry. With the global semiconductor market projected to hit $1 trillion by 2030, India is expected to contribute significantly to this growth.
India has the potential to contribute to the three key segments of the semiconductor manufacturing supply chain: equipment, materials, and services. The country’s network of MSMEs can support the production of components used in semiconductor equipment. India also has access to various chemicals, minerals, and industrial gases that are relevant to the supply chain. In the services segment, India offers capabilities in R&D services, logistics, and skilled professionals in areas such as AI, big data, cloud computing, and IoT.
In May 2025, the Union Minister for Electronics & IT, Railways, and Information & Broadcasting, Shri Ashwini Vaishnaw, inaugurated two semiconductor design facilities located in Noida and Bengaluru. These centres are focused on designing 3-nanometer chips, which adds to the progress India has made in chip design.
The Minister noted that India had previously achieved design capabilities at the 7nm and 5nm levels, and the move to 3nm represents a continuation of that progress in semiconductor technology.
Here are a few semiconductor stocks in focus as sector to grow over 2x to Rs. 9.6 lakh crore by 2030:
Hind Rectifiers Limited
With a market cap of Rs. 3,153 crores, the stock moved up by nearly 1 percent on BSE, rising to Rs. 1,859 on Friday. Hind Rectifiers Limited is principally engaged in the business of developing, designing, manufacturing and marketing a wide range of power electronics equipment, including power converters, control electronics, transformers, rectifiers, inverters, motors, and HVAC systems. As per the shareholding pattern of June 2025, the ace investor Mukul Mahavir Agrawal holds a 1.46 percent stake in Hind Rectifiers.
RIR Power Electronics Limited
With a market cap of Rs. 1,774 crores, the stock hit a 5 percent upper circuit on BSE at Rs. 231.2 on Friday. On 5th June, the company announced successful production expansion and shipment of manufacturing of 1200V Silicon Carbide (SiC) Diodes in collaboration with Pro Asia Semiconductor Corporation, Taiwan.
RIR Power Electronics Limited is engaged in the manufacturing of semiconductor devices like diodes, thyristors, power modules, bridge rectifiers and high power equipment like high current rectifiers, battery chargers, rectifier panels, high power stacks and assembly.
Its products are used for industrial applications in diverse sectors such as railways, induction furnaces, electricity and power generation, engineering, water treatment, metals, defence, automobiles, oil and gas plants, welding equipment, aviation, and more.
The company is India’s only manufacturer of silicon-based power semiconductor devices. The company is a pioneer in power electronics innovation with a fully integrated manufacturing facility in Halol, Gujarat and is currently setting up India’s first silicon carbide fabrication plant in Odisha.
Kaynes Technology India Limited
With a market cap of Rs. 38,893 crores, the stock moved down by nearly 5 percent on BSE, falling to Rs. 5,791 on Friday. Kaynes Technology India Limited is a leading end-to-end and IoT solutions provider enabling electronics manufacturing players, with capabilities across the entire spectrum of Electronics System and Design Manufacturing (ESDM) companies.
The company provides conceptual design, process engineering, integrated manufacturing, and life-cycle support for major players in the automotive, industrial, aerospace and defence, nuclear, medical, railways, Internet of Things (IoT), Information Technology (IT) and other segments.
As of Q4 FY25, the total capex planned for the semiconductor business is ~Rs. 3,400 crore, while around Rs. 1,400 crore is allocated for the printed circuit board (PCB) segment.
In 2023, the company established Kaynes Semicon Private Limited, one of the leading semiconductor manufacturers in India. It is engaged in advanced product offerings such as FCBGA, SiP, chiplets, MCM, and Silicon photonics, aimed at meeting the diverse needs of industry in North America, Europe, APAC, and other global markets.
CG Power & Industrial Solutions Limited
With a market cap of Rs. 1.04 lakh crores, the stock moved down by nearly 2 percet on BSE, falling to Rs. 665.05 on Friday. As part of its strategic diversification, CG entered the semiconductor manufacturing sector in FY24. During the year, CG signed a JV Agreement with Renesas Electronics Corporation, a premier supplier of advanced semiconductor solutions, and Stars Microelectronics (Thailand) Public Co. Ltd, an OSAT (Outsourced Semiconductor Assembly and Test) provider based in Thailand. The agreement aims to establish a JV to build and operate an OSAT facility in India.
The JV, CG Semi Private Limited, planned to set up the OSAT facility in Sanand, Gujarat, on around 28 acres of land, with a total investment estimated at Rs. 7,600 crore over five years.
The facility is planned to produce a wide range of semiconductor packaging solutions – from legacy packages like QFN and QFP to advanced types such as FC BGA and FC CSP, intended to serve sectors including automotive, consumer electronics, industrial applications, and 5G, with the capacity to scale up to 1.5 crore units per day. CG Power and Industrial Solutions Limited operates across two key business segments: Industrial Systems and Power Systems.
The company manufactures a wide range of products, including traction motors, propulsion systems, and signalling relays for Indian Railways, along with induction motors, drives, transformers, switchgears, and other related products for the industrial and power sectors.
Written by Shivani Singh
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