India’s semiconductor market to reach $300 Billion; Here are 3 stocks that could benefit

Synopsis: India’s semiconductor push is accelerating through strong government incentives, rising electronics demand, and a strategic shift to reduce import dependence. The focus on chip design, ATMP, and domestic manufacturing is creating a scalable ecosystem with long-term growth visibility.

India’s semiconductor industry is at a developing stage but is seeing strong momentum, supported by government initiatives and rising demand. The market is expected to grow to $300 billion by 2035, driven by sectors like smartphones, consumer electronics, electric vehicles, telecom, and data centres. Currently dependent on imports, India is aiming to build a self-reliant semiconductor ecosystem while leveraging its strong base in chip design and engineering talent.

Market Size and Growth Outlook

The semiconductor market in India is expected to grow significantly from an existing market size of $120 billion in 2030 to reach $300 billion by 2035. This demonstrates significant growth prospects for the semiconductor industry. This growth will occur at a CAGR of around 20% for the industry as a whole due to increasing demand for semiconductor products used in various industries such as electronics, mobile phones, automobiles, data centres, and artificial intelligence. In particular, the mobile phone and wearable device market is expected to grow from $24 billion to $100 billion by 2035.

Domestic Production and Import Reduction

India is poised to develop local manufacturing capabilities, and it is expected that over 60% of the semiconductor demand will be met locally by 2035, compared to just 10% currently. This will help reduce import dependency considerably, and this is possible due to the expansion in assembly, testing, marking, and packaging (ATMP) and fabrication capacities.

Investment Pipeline and Capex Visibility

The semiconductor industry in India is expected to receive a total investment of around $120 billion by 2035, which indicates a high level of investment in the sector in the long term. Out of this total investment, nearly half of the investment, amounting to around $50 billion, is expected in the next 5 years, including 30 to 35 billion dollars for fab and OSAT facilities and another $15-$20 billion for materials, gases, and manufacturing inputs. In addition to this investment, another investment of around $75-$80 billion is expected between 2030 and 2035 in advanced fab, mature nodes, and display manufacturing.

Ecosystem Development and Capacity Build-Up

The growth is being facilitated by a strong emphasis placed on creating a complete semiconductor ecosystem within the country. This involves scaling up the operations of ATMPs, creating a mature chip fabrication industry for industries such as automotive and industrial uses, and finally creating sophisticated chip fabrication capabilities. This will help move from an import-based semiconductor industry towards a much more localized and self-sufficient semiconductor industry. Stocks to Benefit from this Expansion: 

Moschip Technologies Ltd

Moschip Technologies Ltd is a semiconductor and system design company with a focus on Turnkey ASICs, Mixed Signal IP, semiconductor & product engineering, and IoT solutions catering to aerospace & defence, consumer electronics, automotive, medical and networking & telecommunications 

With the market capitalization of Rs. 3208 Crores, the shares of this company were trading at around Rs. 165 per share, 42.7 percent discount from its 52 weeks high of Rs. 288 per share and is trading at a P/E of 78 where as Industry P/E stands at 23.3 

Kaynes Technology India Ltd

Kaynes Technology is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturing company. The company provides conceptual design, process engineering, integrated manufacturing, and life-cycle support for major players in the automotive, industrial, aerospace and defense, outer-space, nuclear, medical, railways, Internet of Things (“IoT”), Information Technology (“IT”) and other segments. 

With the market capitalization of Rs. 24,920  Crores, the shares of this company were trading at around Rs. 3717 per share, 52 percent discount from its 52 weeks high of Rs. 7705 per share and is trading at a P/E of 63.7 where as Industry P/E stands at 27.5

Tata Elxsi Ltd

Tata Elxsi is amongst the world’s leading providers of design and technology services across industries including Automotive, Media, Communications and Healthcare. Tata Elxsi provides integrated services from research and strategy, to electronics and mechanical design, software development, validation and deployment, and is supported by a network of design studios, global development centers and offices worldwide 

With the market capitalization of Rs. 26,254  Crores, the shares of this company were trading at around Rs. 4,213 per share, 37.4 percent discount from its 52 weeks high of Rs. 6,735 per share and is trading at a P/E of 41.6 where as Industry P/E stands at 20.8

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post India’s semiconductor market to reach $300 Billion; Here are 3 stocks that could benefit appeared first on Trade Brains.