India’s chip dream is entering its next phase. Under Semicon 2.0, the government is doubling down on its semiconductor ambitions, aiming for a 5% share of global chip production by 2030.
Back in 2021, India had announced a US$ 10 billion (bn) incentive package to build its semiconductor ecosystem from the ground up. That money is now finally moving.
Funds are being disbursed, and five projects—across chip fabrication, OSAT, and ATMP have already been approved under the scheme. The idea is to pull in global chip players while also creating space for homegrown champions.
If things go to plan, this policy shift could open up real opportunities for investors looking at India’s semiconductor value chain.
Here are 5 semiconductor stocks like to benefit from this.
#1 IZMO
First on our list is IZMO.
IZMO is known for its interactive marketing and visualization technologies in the automotive space.
It’s quietly building a second growth engine: advanced semiconductor packaging. The company is positioning itself at the intersection of automotive SaaS, AI analytics, and chip packaging.
It’s core business spans AI-powered automotive retail platforms, a massive auto image and CGI library, and data analytics via its FrogData suite. But the emerging growth story lies in Izmo Microsystems, its semiconductor packaging subsidiary.
It’s one of the few Indian firms offering 3D packaging and System-in-Package (SiP) solutions. The unit already serves over 10 global clients across automotive, aerospace, and renewable energy sectors.
In Q3FY25, consolidated revenue rose 16.8% year-on-year (YoY) to Rs 587 million (m), driven by price hikes and new customer wins. However, EBITDA margins softened to 14.1% due to ongoing investments in expanding the semiconductor packaging operations and ramping up the talent pool.
IZMO Stock Price: 1 Year
Data Source: BSE
The company plans to scale its AI decision platforms, launch new products like izmo.ai and izmoEmporio, and deepen its presence in EV software and mobility solutions.
The integration of recently acquired Geronimo is also progressing well. This will strengthen IZMO’s product stack.
Its R&D team is also developing new platforms in 3D modelling, AI-based pricing, and virtual retailing, all of which complement its chip packaging ambitions.
#2 MosChip Technologies
Next on our list is MosChip Technologies.
MosChip Technologies, a semiconductor and system design services company, is emerging as a formidable force in India’s semiconductor ecosystem.
The company has over two decades of experience in silicon design and embedded solutions. It specialises in ASICs, SoCs, VLSI design and embedded software.
The company operates across the entire chip design spectrum from concept and architecture to final silicon and system validation.
It was one of the early beneficiaries of the Design Linked Incentive (DLI) scheme rolled out by India’s Ministry of Electronics and IT (MeitY).
This in tandem with booming demand for semiconductors in AI and high-performance computing, has driven strong business momentum.
In the past three years, the company’s revenue has grown at a CAGR of 40.9%.
MosChip Technologies Stock Price: 1 Year
Data Source: BSE
In July 2024, MosChip secured a Rs 50 bn contract from C-DAC to design a high-performance computing (HPC) System on Chip (SoC) using 5 nm technology. The four-year engagement gave it a major leap and also includes long-term support and maintenance.
Another strategic boost came in October 2024, where the company was inducted as an AI/ML Design Partner in the Renesas RZ Partner Ecosystem. This partnership, focusing on intelligent solutions powered by Renesas’ RZ/V MPUs, aligns MosChip closely with global silicon leaders.
MosChip is building a robust pipeline in RISC-V architecture, HPC processor development and custom IP design. It is actively expanding its global presence with an eye on emerging opportunities across automotive, industrial, and AI workloads.
While the company doesn’t operate a fab, its fabless design-first model makes it highly scalable, asset-light, and capital-efficient.
#3 Cyient
Third on our list is Cyient.
Cyient is a company with over three decades of experience in engineering and technology.
It’s now doubling down on chip design, digital engineering and intelligent manufacturing. These are the key pillars of the government’s Semicon India 2.0 initiative.
At the heart of this transformation is Cyient’s new subsidiary, Cyient Semiconductors. This company is focussed on end-to-end chip design, ASIC development, and embedded systems.
Cyient’s edge lies in its deep expertise across sectors including transportation, communication, energy, aerospace, and healthcare.
The company’s DET (Digital, Engineering & Technology) business line complements its semiconductor aspirations, with a portfolio that includes design, prototyping, and system-level integration.
Cyient Stock Price: 1 Year
Data Source: BSE
The company doesn’t operate a foundry. However, it plays a critical role in the value chain via its design services and strategic IP development.
Its presence across 300+ global clients (including 30% of the world’s top 100 innovators) gives it strong visibility and access to semiconductor demand trends.
Cyient’s DET business clocked FY25 revenues of US$ 688 m, with US$ 370 m in large deal wins across the year. Even amid a tough macro environment, its high free cash flow conversion and zero long-term debt provide a solid foundation for future investments.
#4 HCL Technologies
Fourth on our list is HCL Technologies.
It’s one of India’s top-tier IT firms. The company is quietly making a presence in the semiconductor and electronics value chain. HCL Tech’s capabilities in ER&D, AI, and next-gen software engineering are making it an enabler in the global chip ecosystem.
HCL Tech’s role is upstream in the ecosystem which includes designing chips, testing AI models for silicon use cases, and embedding intelligence across hardware and software layers.
In FY25, the company’s engineering and R&D services segment reported strong 5.5% growth and delivered a record 75% YoY growth in bookings.
The company has built out multiple platforms like that are central to how it engages with global clients. This included chipmakers, auto OEMs, and telecom majors.
In tandem, HCL Tech has established a strong presence in IoT, predictive analytics, and vision-based inspection. This is critical for silicon validation and high reliability use cases.
Its AI Labs and AI Engineering units are working closely with ecosystem partners like NVIDIA and Google to accelerate development cycles and enhance the efficiency of chip-linked applications.
Beyond services, HCL Software is embedding GenAI across its platforms, including the recently launched UNO, an agentic AI orchestrator for process transformation.
In FY25 the company reported a revenue of US$ 13.84 bn, up 4.7% in constant currency, with EBIT margins at 18.3%. The services business alone crossed Rs 1 trillion in annual revenue, while net income grew 10.8% to Rs 174 bn.
HCL Technologies Stock Price: 1 Year
Data Source: BSE
#5 Tata Electronics
Last on our list is Tata Electronics.
Tata Electronics is emerging as a key player in India’s fast-growing electronics and semiconductor industry. While the company isn’t publicly listed yet, it is shaping up to be a name to watch.
The Tata group company is expanding its presence through collaborations with customers and ecosystem partners.
It operates across the full semiconductor and electronics manufacturing value chain, covering Electronics Manufacturing Services (EMS), Semiconductor Assembly and Test (OSAT), Foundry Services, and Design Services.
Tata Electronics is at the forefront of the country’s first commercial semiconductor fabrication facility in Dholera, Gujarat.
The Rs 910 bn project, capable of producing 50,000 wafer starts per month, positions it as a major force in India’s semiconductor ecosystem.
The company is also scaling up its AI-enabled semiconductor foundry operations, providing wafer fabrication, advanced packaging, and testing solutions.
In the near-term, Tata Electronics is focussed on ramping up its semiconductor assembly and testing capabilities, with an emphasis on reliability and failure analysis. It is also strengthening its design services, helping customers develop custom chips and transition to next-gen process technologies.
Over the long-term, the company is strategically expanding its global footprint, with operations in over 17 countries and a talent pool of 65,000+ professionals. Partnerships with leading global players further enhance its competitiveness in semiconductor and electronics manufacturing.
Conclusion
India’s semiconductor sector is at a turning point, with ISM 2.0 aiming to drive domestic innovation, manufacturing, and supply chain resilience.
As policy incentives expand and chip demand rises, the companies mentioned here will benefit. However, the sector remains capital-intensive and subject to execution risks.
Investors should closely track company performance, policy developments, corporate governance, along with global semiconductor trends before making any investment decisions.
Happy investing.
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