India’s ambition to establish itself as a global semiconductor hub took center stage at Semicon India 2025, held from September 2 to 4. The three-day event emphasized key areas such as chip manufacturing, advanced packaging, artificial intelligence, smart manufacturing, and international collaborations. This event highlighted India’s goal of achieving technological self-reliance and playing a more significant role in the global electronics supply chain.
During Semicon India 2025, various domestic semiconductor companies made headlines. CG Power unveiled its first Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. Meanwhile, Kaynes Technology announced that its subsidiary, Kaynes Semicon, is poised to launch the first Made-in-India semiconductor chip in early October.
Investor interest surged, with stocks of CG Power, Kaynes Technology, MosChip Technologies, and others soaring by up to 43% within the first five days of September.
The Indian semiconductor market is on a rapid growth trajectory, currently valued at $45–50 billion for fiscal year 2025 and projected to reach $100–110 billion by 2030, according to industry estimates. The government supports this expansion with significant incentives. Of the ₹76,000 crore Production-Linked Incentive (PLI) scheme, ₹65,000 crore has already been allocated. Additionally, a newly announced $2.7 billion PLI for electronic components aims to attract $7 billion in investments, create approximately 91,600 direct jobs, and enhance local chip production. Concurrently, the Indian Semiconductor Mission has approved ten projects, summing to investments worth ₹1.60 lakh crore.
Significantly, ISRO’s Vikram 32-bit processor, India’s first domestically produced chip, was unveiled during the conference. This development, alongside the establishment of additional pilot lines and projects, is expected to bolster domestic chip production and provide numerous opportunities for businesses and startups.
CG Power, established in 1937, is a key player in power generation and electrical equipment. The company recently launched CG Semi in Sanand, marking India’s first complete OSAT facility. This initiative involves a ₹7,600 crore investment across two plants: a pilot plant capable of producing 0.5 million units daily and a larger plant under construction with a capacity of 1.45 crore units per day. The pilot facility is already operational, with full commercial production anticipated by the end of 2025. Financially, CG Power has shown robust performance, reporting ₹2,643 crore in revenue for the first quarter of fiscal year 2026, up 25% year-over-year, with profit climbing 23% to ₹286 crore. The company also recorded a 56% increase in new orders, culminating in an order backlog of ₹11,971 crore.
Kaynes Technology India, a diversified electronics manufacturer, is investing ₹3,300 crore in an OSAT facility in Sanand that will assemble and package around 60 lakh chips daily for sectors including automotive and consumer electronics. Kaynes Semicon will introduce India’s first homegrown semiconductor chip by early October. Prime Minister Modi recently confirmed that pilot operations have begun, with full production expected later in 2025. Kaynes reported revenues of ₹673.5 crore, a 34% increase from the previous year, and a profit after tax of ₹74.6 crore, up 47% year-over-year, with a robust order book of ₹7,401 crore as of the first quarter of fiscal 2026.
Bharat Electronics (BEL), a defense electronics firm, is collaborating with Tata Electronics to bolster India’s semiconductor ecosystem. In the first quarter of fiscal year 2026, BEL reported revenues of ₹4,417 crore, up 5% year-over-year, and profit after tax of ₹969 crore, up nearly 25%. Its EBITDA margin improved to around 30%, thanks to a favorable product mix.
Dixon Technologies, an electronics manufacturing leader, has announced an investment in a ₹2,49,000 crore display fabrication unit, enhancing local component production and strengthening supply chains. The company experienced significant growth, with a revenue increase of 95% year-over-year to ₹12,838 crore and profit doubling to ₹280 crore.
MosChip Technologies, based in Hyderabad, focuses on semiconductor and product engineering services. It recently launched the MosChip DigitalSky GenAIoT platform, integrating IoT and AI technologies to expedite product development. In the first quarter of fiscal year 2026, MosChip reported a revenue increase of 69% year-over-year to ₹135.6 crore, with net profit doubling to ₹10.9 crore.
India’s semiconductor sector is gaining momentum, spurred by ISRO’s innovations and significant corporate investments. With robust government support, companies like CG Power, Kaynes, Dixon, BEL, and MosChip are positioning themselves for sustained growth. This trajectory suggests that India may soon become a formidable player in the global semiconductor market.
Original Source: https://upstox.com/news/market-news/stocks/cg-power-to-moschip-technologies-five-semiconductor-stocks-to-watch-out-in-2025/article-180763/
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Publish Date: 2025-09-08 07:32:00
