Best Semiconductor Stocks In India to Buy in 2024

May 6, 2024

With technological advancement and growing dependency on electronic devices like computers, mobile phones, and other equipment, the demand for semiconductors is increasing rapidly. This high demand for semiconductor chips creates a buzz in the investment market. Semiconductor stocks in India are considered among futuristic investments with promising growth opportunities.

In this blog, we have discussed everything you need to know to invest in semiconductor stocks in India and provided a list of the best semiconductor stocks to buy in 2024.

What is a Semiconductor?

A semiconductor is a material with conductivity between conductors and insulators. This means it can conduct electricity, but not as strong as conductors like copper or as poor as insulators like glass. Examples of semiconductors are silicon, germanium, gallium arsenide, and cadmium selenide.

With the dropping process, semiconductors have become highly versatile and used for various electronic devices.

Computer CPUs, GPUs, smartphone cameras, car entertainment and braking systems, X-ray machines, 5-G technology, and other electronic devices use semiconductors and depend on them for their functionality.

Buying stocks in the semiconductor industry on which the entire modern technology world depends can offer great opportunities to gain financial growth.

What is a Semiconductor Stock?

Semiconductor stocks refer to those companies involved in designing, developing, manufacturing, and supplying semiconductors. Different semiconductor industry stocks are involved in producing memory chips, microprocessors, sensors, analog ICs, and other types of semiconductor chips.

In India, semiconductors are usually imported from countries like South Korea, Taiwan, Vietnam etc. However, to reduce dependencies on foreign states, fulfil the supply and demand gap, and with the help of government initiatives such as the Semiconductor Fabs Incentive Scheme (SFMIS), India Semiconductor Mission (ISM), Production Linked Incentive (PLI), etc., India's semiconductor industry is growing. Multiple companies have come to semiconductor production.

This results in the Semiconductor stocks India market booming. According to a customer market insights report, in 2023, the Indian semiconductor market was valued at $34.3 billion and is expected to reach $100.2 billion at a CAGR (compound annual growth rate) of 20.1%.

List of 8 Best Semiconductor Stocks in India

The best semiconductor stocks in India include the top companies in the semiconductor market. These semiconductor industries are adopting various strategies like mergers, acquisitions, expansion, alliances, new product launches, etc., to enhance their business and revenues. You can consider buying semiconductor stocks in India based on your market understanding, the company’s reputation, particular semiconductor companies’ future goals, market capital, and other significant factors.

Data is as of April 5th, 2024. To check the latest info. download the Gopocket app now!

Best Semiconductor Stocks Listed in India

1. Tata Elxsi

Tata Elxsi is one of the leading companies in India engaged in semiconductor testing and design services. The company has collaborated with Renesas Electronic Corporation (a well-known supplier of semiconductor solutions) to set up a design centre in Bangalore to develop semiconductor solutions.