Best Semiconductor Stocks to Buy in India

The idea of automation is revolutionizing society. Everything that used to take hours or days may be completed in minutes. This has all been made possible by technological developments. 

Without a chip, every piece of electrical equipment we use daily is worthless. Yes, the operation of every electric piece of equipment depends on a single tiny piece of technology. Semiconductors are the name for these tiny chips. With good reason, semiconductor stocks are currently the center of attention.

The Semiconductor Industry has been growing rapidly in the last few years with the introduction of new technologies. With the growing number of 3D Systems, Virtual Reality, and IoT, the market demands for semiconductor devices will rise, and the profits will increase. Many small and big companies in this industry have their shares listed on the Indian Stock Exchange and NASDAQ.

Let’s look at some of the best semiconductor stocks in India.

List of Top Semiconductor Stocks in India

Due to recent technological advancements like the EV revolution and the rollout of 5G, there has been a sharp rise in the need for semiconductors. Here is a list of the top semiconductor stocks in India:

Best semiconductor stocks in india

Tata Elxsi

The multi-billion Tata Group’s product design division is Tata Elxsi Ltd. Across industries like automobiles, broadcasting, telecommunications, healthcare, and transportation. It is one of the top providers of design and technology services in the globe.tata elxsiTata Elxsi Ltd. also offers technology and design solutions to the automobile, media, communications, and healthcare industries and semiconductors.

The business is geographically widespread. Europe accounts for 36.5% of its income, followed by the US (36%), India (13%), and other nations (14%).

Want to invest in Tata Elxsi? Do check the share price of Tata Elxsi on SMC before investing.

Dixon Technologies

The market leader in India for electronic manufacturing services (EMS) is Dixon Technologies (India) Limited. Being one of the biggest companies in India that concentrate on producing goods for the consumer durables, lighting, and smartphone markets.dixon technologyDixon also creates goods for several other well-known companies, including Philips, Havells, Bajaj, Godrej, Syska, Wipro, Lloyd, Panasonic, Orient, Samsung, and many more. 

Want to invest in Dixon Technologies? Do check the share price of Dixon Technologies on SMC before investing.

ASM Technologies

ASM Technologies Ltd. is a holding company situated in India. The firm provides services to markets in Japan, the Middle East, the UK, the US, Singapore, India, and Singapore. ASM is skilled and knowledgeable in the design and development of RTP,  Etch, PVD, CVD, CMP, and Inspection tool systems and subsystems.ASM TechnologiesASM Technologies specializes in offering consultancy services in systems and embedded software. They provide services such as wireless and cloud security solutions, pilot production, network design, testing, prototyping, and testing.

Want to invest in ASM Technologies? Do check the share price of ASM Technologies on SMC before investing.

Moschip Technologies

The first publicly listed Fabless Semiconductor company in India is MosChip Semiconductor Technology. It offers product design and development services, from Chip Design through Systems Development.moschipWide-ranging international clients make up the customers of Moschip Technologies Ltd. The business specializes in Turn-key ASIC solutions, Mixed Signal IP, Embedded device design services, and Semiconductor design services.

More than 20 distinct connection solutions have been conceived and produced by the company, which has also supplied more than 10 million chips to customers, including Toshiba, Hitachi, Sony, IBM, and Volvo. Additionally, it makes sales to outside customers.

Want to invest in Moschip Technologies? Do check the Moschip Technologies share price on SMC before investing.

SPEL Semiconductor Limited

SPEL Semiconductor Limited is the home of Natronix’s India OSAT facility. It deals with selling electrical integrated circuits (ICs). SPEL is India’s first and only semiconductor IC assembly and testing facility. Because this business sells integrated circuits, a wide range of electronic gadgets, including laptops, smartwatches, smartphones, and computers, employ their goods.

SPEL Semiconductor LimitedAdditionally, SPEL provides services to several fabless businesses globally. America, Asia, and Europe are home to several of their biggest customers. Earnings from the company’s non-Core businesses are on the rise, which might be dangerous. On the other side, the promoter’s ownership was Zero Promoter Pledge, accounting for 59.17%.

Want to invest in SPEL Semiconductor Limited? Do check the share price of SPEL Semiconductor on SMC before investing.

Factors to Consider Before Investing in Semiconductor Companies in India

There are several factors to consider before investing in semiconductor companies in India. 

  • Firstly, it is important to consider the size and scope of the company. The semiconductor market in India is relatively small, so it is vital to invest in companies that have a strong presence in the market. 
  • Secondly, it is crucial to consider the financial health of the company. Semiconductor companies are capital-intensive, so investing in companies with a solid financial position is important. 
  • Thirdly, it is crucial to consider the company’s product portfolio. Semiconductor companies typically have a diversified product portfolio, so investing in companies with a strong product offering is important. 
  • And lastly, it is essential to consider the company’s competitive position. Semiconductor companies are typically highly competitive, so investing in companies with a strong competitive position is important.

Conclusion

In the last few years, the semiconductor industry has been showing strong growth due to promising technology advancements and increasing consumer electronics and automotive demand giving investors the hype to invest in semiconductor stocks.

Countless companies have been entering the electronics market and have witnessed mergers and acquisitions like never before. India is now showing an up-and-coming trend for the semiconductor market, with accelerated growth in areas like consumer electronics and automotive. What is more exciting is that the country’s semiconductor consumption is expected to grow at a CAGR of 17.97% over 2017-2022.

This is your opportunity to invest in the semiconductor companies in India!

Disclaimer: The provided information is solely for educational purposes. Investments in the stock market are prone to risk; before investing, thoroughly read all relevant documents or consult an expert

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