With PM Modi announcing the introduction of the first made-in-India semiconductor chips later this year, an analyst flags HCL Tech and CG Power as potential winners.
India’s semiconductor ambitions got a fresh boost. On India’s 79th Independence Day, Prime Minister Narendra Modi announced that the country’s first ‘Made in India’ semiconductor chips will be available in the market by the end of this year – a move that is expected to benefit domestic players such as Dixon Technologies, ASM Technologies, Moschip, and Kaynes Technology.
This announcement came days after the cabinet approved ₹4,600 crore of fresh investments to set up semiconductor manufacturing units in the states of Odisha, Punjab, and Andhra Pradesh. These projects include India’s first commercial compound semiconductor fab by SiCSem in Odisha, an advanced glass packaging unit by 3D Glass Solutions, and expanded high-power device capacity at CDIL in Punjab.
A serious push for establishing a semiconductor ecosystem under the current government began in 2021 with the launch of the India Semiconductor Mission (ISM). With an initial outlay of ₹76,000 crore, the ISM aims to build a strong semiconductor and display network, positioning India as a global hub for electronics manufacturing and design.
Over the last four years, India has witnessed an acceleration in semiconductor fabrication and design projects. Ten projects worth about ₹1.60 lakh crore have been approved across six states, involving both domestic and global firms.
Significant investments by companies such as Tata Electronics, Micron, HCL-Foxconn, and Kaynes Semicon highlight the growing confidence in India’s semiconductor roadmap. States like Gujarat, Assam, Odisha, Punjab, and Andhra Pradesh have emerged as key hubs.
Semiconductors: Key Players
Micron Technology: Investing $2.75 billion in a chip assembly and testing plant in Gujarat.
Tata Electronics: Backed by the India Semiconductor Mission, the company is setting up a $10.44 billion fabrication unit in Dholera, Gujarat, with a capacity of 50,000 wafers per month and the potential to create over 20,000 jobs. The company also established the country’s first indigenous semiconductor assembly and test unit in Assam.
Larsen & Toubro (L&T): To invest over $300 million to establish a fabless chip company, targeting 15 product designs by 2027.
CG Power, Renesas Electronics, and Stars Microelectronics: To jointly invest $222 million in an Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, with production expected to start in 2026 and full-scale operations by 2027.
HCL–Foxconn JV: To build a ₹37.06 billion semiconductor plant in Uttar Pradesh, with a capacity of 20,000 wafers per month and production beginning in 2027.
Kaynes Semicon: To set up a ₹3,300 crore semiconductor facility in Sanand, Gujarat, capable of producing six million chips per day for multiple industries.
Why India needs a strong semiconductor ecosystem
Semiconductors lie at the heart of today’s digital economy, powering everything from smartphones and automobiles to defence systems and medical devices, and it is essential to be self-reliant. Many factors can create severe shortages in the market.
The semiconductor supply chain bottleneck during COVID-19 reportedly affected 169 industries, with the automobile and electronics industries among the worst hit. India imported over 18 billion units of chips in 2024, making it susceptible to trade conflicts.
Deepening global collaboration
India and the US announced a semiconductor partnership under Washington’s CHIPS Act to assess infrastructure and policies and help set up supply chains.
Startups like Netrasemi, supported under the government’s design-linked initiative, are attracting venture capital and innovating in areas like IoT and smart vision.
Complementing the semiconductor push is the IndiaAI Mission. Armed with a budget of ₹10,300 crore, the mission aims to build AI compute infrastructure, indigenous large language models, and a broad innovation ecosystem. Together, these semiconductor and AI initiatives aim to reduce import dependence and build domestic capability.
Analyst Take
SEBI-registered analyst Mayank Singh Chandel believes that the combination of investment, technology, and talent development could make India a global hub for semiconductors and AI applications in the next few years. He flagged HCL Technologies and CG Power as two stocks that traders must add to their watchlist from this sector.
HCL Tech has been falling since January 2025. However, the stock remains in an uptrend, respecting an upward rising trendline, and is currently trading close to this line while staying above it. If the stock holds this level and shows some strength, there’s a good chance it could move higher from here, according to Chandel.
Meanwhile, CG Power has been in an uptrend since April 2025, consistently making higher highs and higher lows. Currently, the stock is trading in a tight range, but if it breaks out, it could move significantly higher. Watch for resistance around ₹750, ₹800, and ₹850. Its key EMAs (20, 50, 100, 200) are close together, making it an interesting stock for a potential breakout.
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