Semiconductor Stocks

Investors eyeing good returns can choose semiconductor stocks, as India has stepped up focus on manufacturing semiconductors locally

While India has significant talent and natural resources, there are areas where the country is heavily dependent on other nations. A relevant example is the semiconductor industry, which is currently dominated by countries like Taiwan, South Korea, United States, Japan and China. However, things are expected to change soon, as India is taking giant strides in the semiconductor domain. That is where semiconductor stocks come into focus.

Various incentive schemes have been launched, such as the $10 billion India Semiconductor Mission (ISM), to promote design and production of semiconductor chips. Multiple new semiconductor manufacturing plants are also being built in places like Assam and Gujarat. If you are looking for long-term gains, here are some of the semiconductor stocks you can consider.

Bharat Electronics Ltd (BEL) – Bharat Electronics Ltd was launched in 1954 and is a Navratna PSU. It has specialization in sectors such as defense electronics, avionics, radars and semiconductors for anti-drone tech and satellites. From an investment perspective, BEL stocks can be a good option. The company has zero debt and an 85% analyst buy rating. With growth in exports to Asia and Europe, BEL has registered strong revenue growth in Q2 2025. BEL is positioned to capitalize on India’s push for defense indigenization.

Vedanta Ltd (VEDL) – Present in various industrial segments, Vedanta Ltd has forayed into the semiconductors industry. The company is setting up a $8 billion semiconductor fabrication plant in Gujarat. This is part of the India Semiconductor Mission. The company has partnered with Taiwanese foundries for chip production. Vedanta Ltd had a ROE of 31% and dividend yield was at 8.51% in FY25. YoY profit gain was at 15%. Vedanta Ltd can be considered as one of the best semiconductor stocks, as it will be manufacturing a wide variety of chips for EVs, renewables and display units.

Tata Elxsi Ltd (TATAELXSI) – This is another good option among semiconductor stocks, which has potential for future growth. The company has presence in various segments such as healthcare, automotive and media. Tata Elxsi Ltd has specialization in areas such as EV innovation and VLSI services. The company has been benefitting from the increased global demand of AI-IoT systems. Revenue growth has been 25% in 2025 and the company has a strong international client base.

Dixon Technologies (India) Ltd (DIXON) – This company functions primarily as a contract manufacturer for items like mobiles and LEDs. It has partnership with companies like Lenovo and is currently focused on PLI-backed expansion. The company has low debt and order growth has increased by 40% YoY in 2025. Dixon Technologies’ market capitalization has already crossed the Rs 1 lakh crore mark in 2025. The company is expected to capture a significant share in India’s $100 billion domestic chip market by 2030.

CG Power and Industrial Solutions Ltd (CGPOWER) – This company has specialization in areas like power electronics and semiconductors for EVs and renewables. CG Power has partnered with Renesas for India’s first OSAT facility in Gujarat. ROE stands at 28% and the company is expecting a revenue surge of around 30%. With sustained global demand for semiconductors and backing of PLI funding, CG Power and Industrial Solutions Ltd can be considered as one of the best semiconductor stocks.

DISCLAIMER – This article about ‘Semiconductor Stocks’ is for informational purposes only and does not constitute financial advice. Always conduct your own research or consult a SEBI-registered professional before making any investment decisions. Investments are subject to market risks.