The Indian semiconductor industry is making headlines once again, with its market value climbing to approximately $38 billion in 2023 and projections indicating a surge to as much as $50 billion by 2025. According to industry data cited by Trade Brains, this remarkable growth trajectory is expected to continue, with forecasts placing the sector’s value between $100 and $110 billion by 2030. As the global semiconductor market eyes the $1 trillion milestone by the end of this decade, India’s ambitions and investments are positioning it as a crucial player in the worldwide supply chain.
It’s no secret that the world’s insatiable appetite for semiconductors—those tiny chips powering everything from smartphones to electric cars—has exposed vulnerabilities in supply chains heavily concentrated in just a handful of regions. Recent disruptions have only reinforced the urgency for countries to diversify production and reduce reliance on established hubs. India, with its sweeping government initiatives and burgeoning domestic ecosystem, is stepping up to the plate with renewed vigor.
Central to this momentum are strategic policy moves such as the recognition of Electronics System Design and Manufacturing (ESDM) as a core sector under the Make in India scheme. The launch of the India Semiconductor Mission and the Semicon India program have further galvanized industry players, laying the groundwork for a robust and resilient semiconductor ecosystem. These efforts are not just about catching up—they’re about leapfrogging into the future.
“India’s network of MSMEs can support the production of components used in semiconductor equipment,” industry experts told Trade Brains. The country’s access to a diverse array of chemicals, minerals, and industrial gases also makes it well-suited to supply essential materials for chip manufacturing. On the services front, India’s deep talent pool in R&D, logistics, and digital technologies—think AI, big data, cloud computing, and IoT—has become a significant asset, offering end-to-end support for global semiconductor giants and homegrown innovators alike.
In a major boost for the sector, Union Minister for Electronics & IT, Railways, and Information & Broadcasting, Shri Ashwini Vaishnaw, inaugurated two new semiconductor design facilities in May 2025—one in Noida and another in Bengaluru. These centers are laser-focused on designing cutting-edge 3-nanometer chips, a technological leap that places India firmly on the global innovation map. "India had previously achieved design capabilities at the 7nm and 5nm levels, and the move to 3nm represents a continuation of that progress in semiconductor technology," the Minister noted, as reported by Trade Brains.
But what does this mean for investors and the broader business landscape? Several Indian companies are making waves as the sector’s potential to more than double, reaching Rs. 9.6 lakh crore by 2030, becomes increasingly apparent. Let’s take a closer look at some of the semiconductor stocks in focus.
Hind Rectifiers Limited, with a market cap of Rs. 3,153 crores, saw its stock tick up nearly 1 percent on the BSE, closing at Rs. 1,859 on Friday. The company is a stalwart in power electronics, developing, designing, manufacturing, and marketing a wide array of products—everything from power converters and transformers to motors and HVAC systems. Notably, ace investor Mukul Mahavir Agrawal holds a 1.46 percent stake in Hind Rectifiers as per the June 2025 shareholding pattern, underscoring confidence in the company’s growth story.
Another name making headlines is RIR Power Electronics Limited, which hit a 5 percent upper circuit on the BSE at Rs. 231.2 on Friday. On June 5, 2025, RIR announced a successful production expansion and shipment of 1200V Silicon Carbide (SiC) Diodes in collaboration with Taiwan’s Pro Asia Semiconductor Corporation. As India’s only manufacturer of silicon-based power semiconductor devices, RIR is also setting up the country’s first silicon carbide fabrication plant in Odisha—a move that could prove transformative for the nation’s manufacturing capabilities.
Kaynes Technology India Limited, meanwhile, is positioning itself as a powerhouse in end-to-end electronics manufacturing and IoT solutions. Despite its stock dipping nearly 5 percent to Rs. 5,791 on Friday, Kaynes boasts a hefty market cap of Rs. 38,893 crores. The company’s capabilities span conceptual design, process engineering, integrated manufacturing, and life-cycle support, serving sectors as varied as automotive, aerospace, defence, nuclear, medical, railways, and IT. In 2023, Kaynes established Kaynes Semicon Private Limited, which has since become one of India’s leading semiconductor manufacturers, offering advanced products like FCBGA, SiP, chiplets, MCM, and silicon photonics for global markets. As of the fourth quarter of FY25, Kaynes had planned a total capex of around Rs. 3,400 crore for its semiconductor business, with an additional Rs. 1,400 crore earmarked for printed circuit boards (PCBs).
Not to be outdone, CG Power and Industrial Solutions Limited has also entered the semiconductor fray, marking its foray into the sector in FY24. With a market cap of Rs. 1.04 lakh crores, CG’s strategic diversification includes a high-profile joint venture agreement with Renesas Electronics Corporation—a premier global supplier of advanced semiconductor solutions—and Stars Microelectronics (Thailand) Public Co. Ltd, a leading OSAT (Outsourced Semiconductor Assembly and Test) provider. The trio plans to establish a state-of-the-art OSAT facility in Sanand, Gujarat, with an investment of Rs. 7,600 crore over five years. This facility, spanning 28 acres, aims to produce a wide range of semiconductor packaging solutions, from legacy packages like QFN and QFP to advanced types such as FC BGA and FC CSP. Its capacity? A staggering 1.5 crore units per day, serving sectors including automotive, consumer electronics, industrial applications, and the fast-growing 5G market.
CG Power’s broader operations straddle two main business segments: Industrial Systems and Power Systems. The company manufactures everything from traction motors and propulsion systems for Indian Railways to induction motors, drives, transformers, switchgears, and more for industrial and power sector clients. This diversification, combined with its semiconductor ambitions, signals a new era for CG Power and the Indian industrial landscape at large.
As India’s semiconductor sector gathers steam, the country’s potential to contribute across the entire manufacturing supply chain—equipment, materials, and services—has never been clearer. The government’s proactive approach, coupled with private sector dynamism, is laying the foundation for India to become a global semiconductor powerhouse. Investors, policymakers, and industry watchers alike will be keeping a close eye on how these bold moves play out in the years to come.
With the world watching and the stakes higher than ever, India’s semiconductor revolution is not just about chips—it’s about charting a new course for the nation’s technological and economic future.