India's semiconductor sector is experiencing rapid growth. The government, through the Semicon India 2.0 scheme, has taken significant steps to transform the sector. The scheme aims to increase India's share of the global semiconductor market to 5% by 2030.
In 2021, the Indian government announced a $10 billion (approximately ₹83,000 crore) incentive package to boost the semiconductor sector. Funds under this scheme are now being disbursed, with five major projects approved, focusing on chip fabrication, OSAT, and ATMP.
These projects are poised to significantly benefit certain companies. Let's explore five companies best positioned to capitalize on this sector's growth:
1. IZMO Ltd.
IZMO is known for its digital technology solutions in the automotive sector. The company is now expanding into semiconductor packaging.
- Its subsidiary, Izmo Microsystems, provides 3D packaging and System-in-Package (SiP) solutions.
- Its 10+ global clients span the automotive, aerospace, and energy sectors.
- Revenue increased by 16.8% to ₹58.7 crore in Q3 FY25.
- However, EBITDA margin stood at 14.1% due to investments in new projects.
2. MosChip Technologies
MosChip is one of India's leading semiconductor design companies.
- Over 20 years of experience and expertise in ASIC, SoC, and RISC-V design.
- Secured a ₹50,000 crore order from C-DAC to design an HPC chip based on 5nm technology.
- Part of Renesas' AI/ML design network.
- Demonstrated b performance last year.
3. Cyient Ltd.
Cyient is a technology company with over 30 years of experience, now focusing on semiconductor design.
- Through Cyient Semiconductors, the company undertakes ASIC design and development.
- It boasts 300+ global clients.
- Generated $688 million in revenue from its DET business in FY25.
4. HCL Technologies
HCL Technologies, a major Indian IT company, is expanding into semiconductor design and testing.
- Experienced 5.5% growth in its ER&D segment in FY25.
- Partnerships with global companies such as NVIDIA and Google.
- Its AI Labs are working on chip validation and IoT solutions.
- HCL's revenue in FY25 reached $13.84 billion.
5. Tata Electronics (Unlisted)
This Tata Group company is building India's first commercial semiconductor fabrication plant in Dhule, Gujarat.
- The project is valued at ₹91,000 crore.
- The plant will have a capacity of 50,000 wafers per month.
- Focus on OSAT and foundry services.
- Expanding through global partnerships.
