The Indian government is on the trajectory to boost the semiconductor industry by accelerating approvals for semiconductor projects and offering generous incentives. Hence, semiconductor-focused companies are expected to see increasing momentum in the years ahead.

However, experts believe that India’s semiconductor sector is still at an early stage, and substantial work remains before the country can build end-to-end capability across the supply chain.

“While India lacked meaningful presence in the global semiconductor ecosystem until recently, it is now emerging as a possible hub for chip design, assembly, and testing. The first Indian-made semiconductor chip is expected to hit the market by end-2025, a symbolic move toward technological sovereignty. The sector’s long-term promise remains strong, but specific stock performance depends heavily on project execution, global market conditions, and overall valuation. India has a huge opportunity in semiconductors, but the journey will be gradual and selective,” said Sugandha Sachdeva- Founder-SS WealthStreet.

Sachdeva further added that the global semiconductor industry is on a trajectory to become a trillion-dollar market in the years ahead, and India is ambitiously positioning itself to play a more prominent role.

“As the Prime Minister aptly described them, semiconductors are the “digital diamonds” that will drive 21st-century growth. Accordingly, there is growing focus on firms that aim to manufacture chips in India. With the government accelerating approvals for semiconductor projects and offering generous incentives, companies focused on semiconductors are likely to gain traction in the coming years,” she added.

Is it right time to buy?

According to Seema Srivastava, Senior Research Analyst at SMC Global Securities, MosChip Technologies, Kaynes Technology, and CG Power have emerged as potential beneficiaries.

MosChip Tech vs Kaynes Tech vs CG Power

“MosChip, a fabless semiconductor and silicon engineering company engaged in ASIC and SoC design, has reported stellar growth with Q1 FY26 revenues up 69% year-on-year and net profit more than doubling, fueling a sharp rally in its stock. Yet, soaring valuations with a P/E above 200x leave little room for error, making the stock highly vulnerable if earnings fail to scale.

In contrast, Kaynes Technology offers more execution stability, supported by a strong balance sheet, low leverage, and investments in electronics manufacturing and OSAT facilities. While large-scale capex and extended gestation cycles may weigh on near-term returns, its diversified portfolio and steady growth provide a balanced risk-reward profile.

Meanwhile, CG Power, through its subsidiary CG Semi, is investing over ₹7,600 crore to set up large OSAT facilities in Gujarat, potentially marking India’s first large-scale semiconductor assembly success. Success here will depend on utilization, yields, and timely execution, given OSAT’s capital-intensive, thin-margin nature,” Srivastava said.

Which semiconductor stock to buy?

Sugandha Sachdeva of SS WealthStreet said that well-chosen stocks in this sector could deliver strong returns but only for patient investors who can withstand volatility and execution risk.

• MosChip Technologies has seen sharp upmove recently with strong volume.The stock has a floor around Rs.155 mark, and dips toward Rs.220-210 zone might be attractive entry points. The stock looks poised to target Rs.310 over the medium to long term.
• Kaynes Technology faces resistance near Rs.7,480 mark after having surged by around 20% for the month to date, and a breakout above this level on a convincing basis could lead to a move towards Rs.9,800-10,000 levels over the medium to long term, with key support in sight at Rs.6,500.
• CG Power has already rallied, and once the momentum cools-off, dips in the Rs690-695 band may attract buyers. Its medium-term upside could reach Rs.880–900. Key support is seen at the Rs.645 mark.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.