Semiconductor Stocks in India 2026: Companies Building India’s Chip & Electronics Ecosystem

India's semiconductor story is beginning to look very different in 2026.

For several years, the theme largely revolved around government incentives, proposed fabs and future investment announcements. Now, parts of the ecosystem have moved into actual commercial production.

As of September 2026, 12 semiconductor manufacturing units involving more than ₹1.64 lakh crore of cumulative investment have been approved under the India Semiconductor Mission, and five units have commenced commercial production. The Government of India has also approved Semicon 2.0 with an outlay of ₹1,27,500 crore, expanding the focus beyond fabs and packaging to chip design, equipment, materials, R&D and talent.

That matters for investors researching semiconductor stocks in India because the opportunity is no longer limited to one type of business.

India's emerging semiconductor value chain now includes chip designers, fabless semiconductor companies, OSAT and ATMP facilities, compound-semiconductor manufacturers, semiconductor-equipment suppliers and a much larger electronics manufacturing ecosystem.

But there is an important distinction to make:

A company associated with electronics manufacturing is not automatically a semiconductor manufacturer.

Understanding that difference is essential before looking at listed semiconductor-related companies in India. Source: Government of India semiconductor backgrounder.

India’s semiconductor opportunity in numbers

According to a September 2026 Government of India semiconductor backgrounder, India's semiconductor demand is projected to reach approximately US$110 billion by FY2030 and exceed US$200 billion by FY2035.

India spent almost US$150 billion importing semiconductor products between FY2017 and FY2025, with imports growing at a 23% CAGR during that period.

At the same time, the electronics industry that consumes those chips has expanded rapidly.

India's electronics production increased from about ₹1.9 lakh crore in FY2015 to ₹13.11 lakh crore in FY2026, while electronics exports increased from more than ₹38,000 crore to approximately ₹4.24 lakh crore. Source: PIB, September 2026.

These numbers help explain why the semiconductor theme is increasingly intersecting with other structural investment themes such as artificial intelligence, data centres, electric vehicles, industrial automation, defence electronics, telecom and renewable energy.

What actually counts as a semiconductor stock?

The semiconductor industry is not a single business.

A simplified value chain looks like this:

Chip design → wafer fabrication → assembly and packaging → testing → semiconductor equipment and materials → electronic systems and products

Companies can participate at very different points.

A fabless semiconductor company designs chips but outsources manufacturing to a foundry.

A semiconductor fab converts wafers into integrated circuits through processes such as lithography, deposition and etching.

An OSAT, or Outsourced Semiconductor Assembly and Test company, takes fabricated dies and performs packaging and testing.

ATMP refers to Assembly, Testing, Marking and Packaging.

Then there are equipment and materials suppliers that enable these factories to operate.

Finally, EMS companies manufacture electronic boards, assemblies and finished systems using semiconductors—but they should not necessarily be classified as semiconductor manufacturers.

This distinction is particularly important in India because many popular online lists combine all these categories under the label “semiconductor stocks.”

Semiconductor stocks in India: understanding the listed ecosystem

Rather than ranking companies, the table below classifies some listed Indian companies according to where their identifiable semiconductor exposure sits.

These businesses are not directly comparable. Their capital requirements, customers, economics and technological risks differ substantially.

1. CG Power and Industrial Solutions: OSAT exposure through CG Semi

CG Power is among the clearest listed-company participants in India's new semiconductor manufacturing infrastructure.

Its semiconductor project in Gujarat is being developed with technology and partnership support involving Renesas Electronics and STARS Microelectronic. The government-approved investment is approximately ₹7,584 crore, with planned capacity of roughly 15.07 million units per day.

More importantly, this is no longer only a proposed facility.

CG Semi's Sanand OSAT plant began commercial production in July 2026, making it one of India's first semiconductor projects under the current mission to move into production. Source: PIB, 4 July 2026.

OSAT facilities perform a critical stage of the semiconductor process after wafer fabrication: chips need to be packaged, electrically connected, protected and tested before they can enter electronic systems.

For investors researching CG Power as a semiconductor stock, the distinction is therefore important. CG Power remains a diversified industrial company; semiconductor exposure comes through its semiconductor venture rather than representing its entire business.

2. Kaynes Technology: from electronics manufacturing to semiconductor packaging

Kaynes Technology entered the semiconductor value chain through Kaynes Semicon's OSAT facility in Sanand, Gujarat.

The government approved the project with an investment of approximately ₹3,307 crore. Its planned capacity is more than 6.33 million chips per day, using wire-bond interconnect and substrate-based packaging technologies.

The facility commenced production on 31 March 2026. Source: Prime Minister's Office.

This makes Kaynes interesting from an ecosystem perspective because it connects multiple stages of electronics manufacturing. The company's existing electronics manufacturing capabilities sit downstream from semiconductor packaging, creating a broader “chips to systems” positioning.

However, investors should still distinguish between Kaynes Technology's established electronics business and the economics of its relatively new semiconductor operations. New OSAT capacity requires customer qualification, utilisation ramp-up and consistent manufacturing yields before project potential translates into mature financial performance.

3. Larsen & Toubro: building a fabless semiconductor business

Larsen & Toubro represents a different type of semiconductor exposure.

Its wholly owned subsidiary L&T Semiconductor Technologies, or LTSCT, is developing semiconductor products rather than operating a conventional wafer fabrication plant.

At SEMICON India 2026, LTSCT unveiled 40 semiconductor products. The company also announced its first silicon-carbide platform and the tape-out of a fully designed-in-India BLDC motor-controller chip.

Its 1,200-volt silicon-carbide MOSFET platform is intended for applications including EV fast chargers, microgrids, traction inverters and other high-power conversion systems. LTSCT is also developing products across analog and mixed-signal chips, compute, connectivity and RF.

This is closer to a fabless semiconductor model: intellectual property and chip design are central, while fabrication can be performed through external manufacturing partners.

L&T therefore offers a useful illustration of why semiconductor investing cannot be viewed only through factories. Chip architecture, intellectual property and product design can represent substantial parts of semiconductor value creation.

At the same time, L&T is an extremely diversified group, so its semiconductor subsidiary currently represents only one part of a much larger business. Source: L&T, SEMICON India 2026 announcement.

4. MosChip Technologies: semiconductor design rather than semiconductor manufacturing

MosChip is one of the more direct listed Indian exposures to semiconductor engineering and chip design.

The company provides services spanning silicon architecture, RTL design, verification, physical design, fabrication interface, packaging and post-silicon validation. It is also a member of TSMC's Design Center Alliance.

One strategically relevant project is AUM, an indigenous high-performance-computing processor being developed for C-DAC's National Supercomputing Mission.

MosChip and Japan's Socionext are working with C-DAC on the processor, which uses the Arm Neoverse V2 platform and a TSMC 5-nanometre technology node.

Another project, VIDYUT, is a RISC-V-based smart-energy-meter IC supported under MeitY's Design Linked Incentive scheme. MosChip describes the project as a turnkey development from architecture through silicon. Sources: MosChip's silicon-engineering projects and AUM announcement.

This highlights another segment of India's semiconductor ecosystem: companies do not necessarily need their own fabs to participate meaningfully in semiconductor value creation.

For a design-led business, investors would typically need to understand the quality of intellectual property, engineering capabilities, customer concentration, project pipeline, product-versus-services mix and ability to commercialise proprietary chips.

5. ASM Technologies: supplying the semiconductor-equipment ecosystem

ASM Technologies provides a useful example of an indirect semiconductor play.

The company does not need to manufacture chips itself to participate in semiconductor capital spending.

ASM says it has extensive experience working with semiconductor-equipment manufacturers and designing systems and subsystems used in processes including physical vapour deposition, chemical vapour deposition, rapid thermal processing, etching, chemical-mechanical planarisation and inspection.

These processes sit inside the manufacturing chain required to turn wafers into semiconductor devices. Source: ASM Technologies.

This category could become increasingly relevant under Semicon 2.0 because the new programme explicitly adds machines and materials to India's semiconductor strategy rather than concentrating only on fabs and packaging.

Investors should nevertheless distinguish semiconductor-equipment engineering revenue from direct chip manufacturing revenue when comparing ASM with companies such as CG Semi or Kaynes Semicon.

6. RIR Power Electronics: the silicon-carbide opportunity

RIR Power Electronics sits in the power-semiconductor segment and is developing a silicon-carbide, or SiC, semiconductor facility in Bhubaneswar.

The company has announced an investment of approximately ₹618 crore for the facility and intends to manufacture high-power SiC semiconductor devices. Source: RIR Power Electronics.

Silicon carbide is particularly relevant to high-voltage and high-temperature applications because of properties that can improve efficiency in power conversion. Potential applications include electric vehicles, renewable energy, industrial systems, railways and other power-intensive equipment.

Execution remains important here.

As of 17 September 2026, the project had completed installation of key SiC epitaxial-wafer equipment and was approaching commercial production, rather than having an established large-scale operating history at the new facility. Source: Business Standard, 17 September 2026.

That makes it a good example of why investors should distinguish between announced capacity, installed capacity and actual commercial production.

What about Tata Electronics?

Any discussion of India's semiconductor ecosystem would be incomplete without Tata Electronics.

But there is an important stock-market distinction: Tata Electronics itself is not an independently listed Indian stock.

The company is developing two of India's largest approved semiconductor projects.

Its proposed Dholera semiconductor fab in Gujarat involves approximately ₹91,526 crore of investment, is being established with Taiwan's PSMC and is designed for around 50,000 wafer starts per month.

Tata Electronics is also developing a semiconductor assembly and packaging facility in Assam with approved investment of approximately ₹27,120 crore and planned capacity of 48 million units per day.

These projects make Tata Electronics central to India's manufacturing ambitions. Source: Government of India project details.

However, investors should not automatically treat every listed Tata Group company as a direct proxy for Tata Electronics. Economic ownership and revenue exposure should be verified rather than inferred from a common group name.

The same principle applies throughout the sector.

India has started semiconductor production—but fabrication and packaging are different

One potential source of confusion around the Indian semiconductor story is the phrase “India is now manufacturing chips.”

As of September 2026, five semiconductor units approved under Semicon 1.0 had entered commercial production: facilities associated with Micron, Kaynes, CG Semi, CDIL Semiconductor and Suchi Semicon.

Much of this initial production involves packaging, testing or discrete semiconductor devices rather than cutting-edge processor fabrication.

That does not make the capacity unimportant.

ATMP and OSAT are essential parts of the semiconductor supply chain, and advanced packaging is becoming increasingly important globally as chip architectures become more complex.

India's first large silicon wafer fab under the current programme—the Tata Electronics project at Dholera—is a separate, considerably larger undertaking.

Investors researching semiconductor stocks should therefore ask exactly what is being manufactured rather than treating every semiconductor plant as technologically identical.

Why Semicon 2.0 could broaden the investable ecosystem

Semicon 1.0 established much of India's initial manufacturing pipeline.

Semicon 2.0 is broader.

Approved in July 2026 with an outlay of ₹1,27,500 crore, it is organised around six areas: design, machines and materials, new fabs, advanced packaging, research and talent development.

This matters because it potentially widens the semiconductor theme beyond the first group of OSAT and fab projects.

India may increasingly need domestic or locally manufactured:

semiconductor manufacturing equipment and precision components; specialty gases and chemicals; substrates and packaging materials; chip-design IP; testing equipment; clean-room infrastructure; power semiconductors; printed circuit boards; connectors and other electronic components.

The adjacent electronics ecosystem is also expanding. Under the Electronics Components Manufacturing Scheme, 106 projects across 15 states involving ₹69,548 crore of approved investment had been cleared by August 2026, while 38 approved plants were already in production. Source: MeitY, ECMS update.

This is why India's semiconductor opportunity may ultimately be better understood as an ecosystem theme, rather than a hunt for one “Indian NVIDIA” or one semiconductor stock.

Semiconductor stocks vs electronics manufacturing stocks

Investors will frequently encounter names such as electronics manufacturing services companies when searching for semiconductor stocks in India.

There is genuine overlap—but the businesses should not be confused.

An EMS company may manufacture printed circuit-board assemblies, box-build products, industrial electronics or complete devices. Those products consume semiconductor chips, but the EMS company may neither design nor manufacture those chips.

That does not make electronics manufacturers irrelevant to the theme. India's growing electronics industry is an important source of domestic semiconductor demand.

It simply means semiconductor exposure should be classified accurately.

A useful framework is to ask:

Does the company design semiconductor IP? Does it fabricate wafers? Does it package and test chips? Does it manufacture compound or discrete semiconductors? Does it supply specialised equipment or materials to semiconductor factories? Or does it primarily assemble electronic products containing imported chips?

The answer can significantly change the investment thesis.

What should investors examine before evaluating a semiconductor stock?

The semiconductor narrative can attract considerable market attention, but the underlying economics matter more than the label.

Investors researching Indian semiconductor companies may want to examine factors such as the percentage of revenue actually linked to semiconductors, ownership of the relevant subsidiary or joint venture, project stage, utilisation levels, customer qualification, manufacturing yields, technology partnerships, capital expenditure, debt, government incentives and the company's ability to keep pace with changing technology.

A project announcement should not be treated as equivalent to commercial production.

Similarly, installed capacity should not be treated as equivalent to profitable utilisation.

For design companies, the key questions are different: proprietary intellectual property, number and quality of tape-outs, customer relationships, recurring product revenue and the ability to convert engineering work into commercially scalable chips can matter more than factory capacity.

Key risks in India’s semiconductor theme

India's opportunity is large, but semiconductor manufacturing is one of the world's most technically demanding industries.

Projects require large capital commitments and long development cycles. Customer qualification can take time, yields may take several production cycles to optimise, and technology can change rapidly.

India also remains dependent on global supply chains for several sophisticated pieces of equipment, materials and intellectual property.

For investors, another risk is valuation getting ahead of actual semiconductor revenue. A listed company's share price can sometimes respond quickly to a semiconductor announcement even when the associated business is years away from meaningful commercial contribution.

That makes separating narrative, capacity and realised financial performance particularly important.

The bottom line

2026 may prove to be an important transition year for India's semiconductor sector.

The investment narrative is shifting from “which projects have been announced?” to “which parts of the value chain are entering production, winning customers and developing local technology?”

Five approved semiconductor units are now in commercial production. Kaynes and CG Semi have moved from planned OSAT facilities to operating plants. L&T is building a domestic fabless semiconductor portfolio. MosChip participates in advanced chip-design projects. Equipment and materials are becoming an explicit focus under Semicon 2.0, while major projects from Tata Electronics could add significant fabrication and packaging capacity over the coming years.

The result is that “semiconductor stocks in India” is becoming a much broader category than it was a few years ago.

But that breadth makes classification more important, not less.

For investors following the sector, the useful question is not simply which company is associated with semiconductors. It is where that company sits in the semiconductor value chain, how much of its business actually comes from that segment, and whether its semiconductor plans have progressed from announcements to commercial execution.

Those distinctions may ultimately matter more than the semiconductor label itself.

Disclaimer: This article is for educational purposes and does not constitute investment advice or a recommendation to buy or sell any stock. Investors should independently evaluate financials, valuations, risks and suitability before making investment decisions.