The semiconductor industry in India

 The semiconductor industry in India

semiconductor in india

The semiconductor industry in India is still evolving, but it promises significant growth potential. Recently, certain Indian companies with a presence in the semiconductor space have seen remarkable performance in the stock market, even though the industry is in its nascent stage in the country. Noteworthy among these companies are:

 HCL Technologies

• Business Area: IT services with engineering solutions for semiconductor companies, including chip design, verification, and software development.

• Market Performance: 

  Market cap: Rs 3,67,484 crore.

  Share performance: 20% gain in the past year, 150% gain over the last five years.

Tata Elxsi

• Business Area: Design and technology services, providing end-to-end solutions for the semiconductor industry, including VLSI design, verification, and software development.

• Market Performance:

  Share performance: 2.27% decline in the last year, nearly 8x growth over the last five years.

Moschip Technologies

• Business Area: Custom ASIC solutions and semiconductor design services for industries like auto, aerospace, and consumer electronics.

• Market Performance:

  Share performance: 117.26% gain in the past year, 630% gain over the last five years.

ASM Technologies

• Business Area: Engineering services in semiconductor design, development, and testing.

• Market Performance:

   Share performance: 128% gain in the last year, 2,035% gain over the last five years.

 SPEL Semiconductor

• Business Area: Semiconductor assembly and testing, including packaging, testing, and quality assurance.

• Market Performance:

 Share performance: 211% gain in the last year, ~2,043% gain over the last five years.

 RIR Power Electronics

• Business Area: Manufacturing of power semiconductors.

• Market Performance:

   Share performance: 350% gain in the past year, 3,900% gain over the last five years.

 CG Power

• Business Area: Power transmission, distribution of power products, and development of semiconductor-related facilities

• Market Performance:

 Share performance: 68% gain in the last year, 1,721% gain over the last five years.

 Government  Initiative

Government's Initiative

 India Semiconductor Mission

In December 2021, the government introduced an Rs 76,000-crore incentive scheme for the semiconductor sector, offering subsidies for plant setup.

Recent Approvals

Several projects have received approval under this scheme:

• CG Power: Rs 7,600-crore chip packaging facility in Sanand, Gujarat, in partnership with Japan's Renesas Electronics.

• Tata Group: Rs 27,000-crore chip assembly plant in Morigaon, Assam.

• Tata Electronics: Rs 91,000-crore plant in Dholera, Gujarat, in partnership with Taiwan's Powerchip.

Additionally, Micron Technology received approval for a Rs 275-crore packaging plant in Gujarat, under construction.

Expert Opinions

Sunny Agrawal, Head of Fundamental Research at SBI Securities, believes that India is on the path to becoming a global supply hub for electronics projects. He points out that the semiconductor sector in India offers significant growth opportunities as the country moves towards self-reliance in chip supply.

 Investment Considerations

While opportunities are ample, industry experts caution investors to stay vigilant for significant developments as the semiconductor ecosystem in India is still maturing.

Conclusion

Overall, the semiconductor space in India presents a robust growth outlook bolstered by supportive government policies and strategic corporate investments. Investors, however, should remain watchful of the evolving landscape and potential developments that could impact market dynamics.