A semiconductor is like a throbbing heart of the world’s tech industry and is the foundational block of computers, mobile phones and other electronic gadgets. Without the semiconductors, the modern and swiftly communicating world, as we know it, would not have existed. The stocks of companies that design or manufacture the semiconductors are referred to as semiconductor stocks. India is making a push for investment in semiconductor manufacturing and has recently announced a US$ 10 billion Semicon India Programme that aims to develop a semiconductor and display ecosystem in India. It is further to make the semiconductor stocks in India a good investment option.
There is an increasing demand for semiconductors in the world and its market has grown from US$ 400 billion in 2017 to US$ 500 billion in 2020. The projection, by McKinsey & Company, is that the global semiconductor industry will reach US$ 1 trillion by the end of this decade. The semiconductor industry in India is robust with a large scale domestic and global market. You must make an informed investment decision by choosing from amongst the best semiconductor stocks..
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What is a Semiconductor?
Semiconductors are the foundational pillar of the modern world. It has been variously described as the “heart”, the “brains”, and the “most essential component” of modern electronics devices. The user-friendly qualities of the semiconductors, like high portability, less requirement for power, longer lifespan, noise-free operations, have enabled them to lead the extraordinary advances and technological wonders in communications and computing, robotics, healthcare, banking and military systems, and other applications, in the last two decades.
5 Best Semiconductor Stocks in India
The semiconductor sector includes companies that design and manufacture the semiconductors. Here are the five best semiconductor stocks in India in 2023.
| Name of the Company | Latest Stock Price (October 2023) | Stock Price 6-months-ago (April 2023) | Stock Price 5-year-ago(October 2018) |
| Tata Elxsi | ₹7450 | ₹6289 | ₹982 |
| ASM Technologies | ₹476 | ₹436 | ₹48 |
| SPEL Semiconductors | ₹56 | ₹47 | ₹8 |
| HCL Tech | ₹1257 | ₹1042 | ₹479 |
Introduction to Top Semiconductor Stock Companies in India
Here is a brief introduction about the best semiconductor companies in India where your investment is expected to grow. This introduction will let you familiarise with the top semiconductor companies in India.
Tata Elxsi
Tata Elxsi belongs to the mighty Tata group of India and it was founded in 1989 in Bangalore. The company develops and promotes applications of electronics, embedded systems, and software. It has more than 12,000 employees based in 36 locations.
ASM Technologies
ASM Technologies Limited was established in 1992 and is a publicly-listed company in India. It has presence in the USA, Singapore, UK, Canada, Mexico and Japan. ASM provides consulting and product development services and has offshore development and support centers in India and overseas. In 2022, ASM Technologies announced a 50:50 joint venture with Hind High Vacuum to manufacture semiconductor equipment in India and perform design-led engineering and manufacturing of tools, subsystems, subsystem components, and components for the semiconductor.
SPEL Semiconductors
SPEL Semiconductor Limited was founded in 1988 and is headquartered in Chennai. It is engaged in semiconductor integrated circuit (IC) assembly and testing facilities. SPEL is India’s first company to assemble and test semiconductor ICs. Its customers include Integrated Device Manufacturers (IDMs) and Fabless Companies in the United States, Asia and Europe.
HCL Tech
HCL Technologies, formerly Hindustan Computer Private Limited, was founded in 1976 as one of India’s first tech startups. It has more than 223,000 employees, 210 delivery centres, 60 innovative labs, more than 10,000 clients and 2000 patents. The company was founded by Shiv Nadar. In September 2019, HCL Tech announced the acquisition of Sankalp Semiconductors, which had 5000+ man-years of experience in the semiconductor design space. In March 2023, there were reports that HCL Tech is planning to double its semiconductor services business.
Healthy Investment Tips
The semiconductor sector is a comparatively young and growing industry, which has an immense demand across the world. The sector is likely to grow in the coming years and there is a forecast that its market growth will double by the end of this decade. The semiconductor stocks in India are potentially a good investment for the coming years, even though it had faced a supply demand during the pandemic years.
So, make an informed decision and choose the top semiconductor stock to make your investment. Know that benefits are as real as the risks associated with your investment. You must also be certain about investment goals, whether you want to make a short-term investment, or stay on for a medium or long term.
Frequently Asked Questions
The semiconductor sector is a thriving and growing industry with huge demand across the world. However, this sector had faced a supply shortage during the pandemic years, which has now been overcome. So make an informed decision before making investment plans.
There are several sectors which are good for investment in 2023. These sectors include automobiles, oil and natural gas, electric vehicles, FMCG, semiconductor, and IT. You can choose a sector based on your investment goals and risk appetite.
The best semiconductor stocks in India which you can buy include Tata Elxsi, ASM Tech, SPEL Semiconductors, and HCL Tech. You must, however, study about these companies and their stock history before making a final decision.
The advantages of investing in semiconductor stocks are many. For example, it is a young and growing sector, which is nowhere close even to the point of exhaustion or saturation. Also, there is a huge demand for semiconductors across the world and also within India.
Yes, the semiconductor stocks are likely to go up in 2023. There are several reasons for this, like the supply shortage faced during the pandemic years is now over and the demand for semiconductors has been growing all over the world.
