Technology is achieving exponential growth in recent times a small chip can run a laptop, refrigerator and almost every electronic device. That chip is known as a semiconductor. Even the EVs are running through the semiconductors. Due to the global pandemic, wars & other imbalances, there has been a shortage of semiconductors for the past two years and the industry faced a revenue loss of around $500 billion. In this blog, we’ll discuss the best semiconductor stocks in India 2022.

1. Top 5Best
Semiconductor
Stocks in India

2. Introduction
Technology is achieving exponential growth in recent times a small chip can run a laptop,
refrigerator and almost every electronic device. That chip is known as a semiconductor. Even the
EVs are running through the semiconductors. Due to the global pandemic, wars & other
imbalances, there has been a shortage of semiconductors for the past two years and the industry
faced a revenue loss of around $500 billion. In this blog, we’ll discuss the best semiconductor
stocks in India 2022.
But first, let’s understandthe stats of semiconductor production in India. Due to their rising use in
distinct products, these chips are anticipated to become more significant across multiple
industries. Despite the fact that more semiconductor manufacturing facilities are anticipated to be
built globally, the supply deficit is anticipated to persist.

3. The global need for semiconductors has been fueled by the advancement of
artificial intelligence, the internet of things, and related sectors. The key parts of
making a semiconductor include memory, Micro components, OSD, logic, and
analogues.
Currently, India mostly imports all the semiconductors it needs and the demand
for the same is likely to rise to $100 billion by 2025 which earlier was $24 billion. In
order to support the semiconductor companies in India, the government passed
the production-linked incentive (PLI) scheme of ₹76,000 crores to enhance India’s
manufacturing base in the production of semiconductor chips.
How a PLI Scheme is beneficial?

4. The building of a semiconductor ecosystem in the country is the main objective of
implementing the PLI scheme. It will also give financial support to semiconductor
manufacturers in the form of subsidies in India.
As a result, it will be convenient to reduce production expenses and the companies
will be able to leverage their profitability and will be motivated to produce more.
Additionally, it will enable the semiconductor companies to have more cash in hand
during these uncertain times, which may be used for various purposes.
The action was taken at a time when the global semiconductor market was in trouble, majorly during the
pandemic. The macro-level economy will attain profitability in terms of creating more jobs for
individualsas well say, the establishment of manufacturing units of semiconductors will create around

5. 35,000 specialist jobs and up to 1 lakh indirect jobs which further will generate investment of more than
1.7 lakh crores in the country.
Table of Contents
Introduction
How a PLI Scheme is beneficial?
List of 5 Best Semiconductor Stocks in India Tata Elxsi Ltd.
Moschip Technologies
ASM Technologies
SPEL Semiconductor Ltd.
Ruttonsha International Rectifier Ltd
List of 5 Best Semiconductor Stocks in India
Here we go with India’s top semiconductor companies and their stock updates, let’s know about them one
by one.

6. Company Market Cap (In Crores) Stock Exchange
Tata Elxsi Ltd. ₹49,778 NSE/BSE
Moschip Technologies Ltd. ₹855 BSE
ASM Technologies Ltd. ₹498 BSE
SPEL Semiconductor Ltd. ₹245 BSE
Ruttonsha International Rectifier Ltd. ₹142 BSE
Tata Elxsi Ltd.
Incorporated in the year 1989 and one of the best semiconductorstocks in India. Tata Elxsi
offers design & technology services to a vast client base including those in the automotive,
broadcast, communications, healthcare, and more. The company provides semiconductor
services, such as FPGA design and development, functional safety, SDK & reference design
solutions, and multimedia reference frameworks as well. In Aug 2021, the companyplanned to

7. assemble a new semiconductorand testing unit with an investment of $300 billion and
presently it has entered the 5G project and started its semiconductor firm as well.
This Indian semiconductor company’s manufacturing unit will open doors to 4000+ jobs and will have major
supplies to Tata Power & Tata Motor after being operational by late 2023. Its certain strengths include its
nearly debt-free status and its solid ROE track record of 29.95% in the previous year. The firm’s operating
margin, which is currently standing at
28.67% signifies robustness in its operations.
Details at a Glance
Face Value: ₹10
Net Profit Margin: 20.16
Current Ratio: 5.26
Promoter’s Holdings: 44.08%
ROE (%): 30.15 EPS: ₹88

8. Dividend Yield: 0.51%
Moschip Technologies
The first fabless semiconductor company in India is Moschip Technologies established in the
year 1999 which was previously a semiconductor system design company based out of
Hyderabad. To be precise this firm does not manufacture the semiconductors but they design,
test & pack them to deliver to the rest of the world.
For the year 2021, the company’s 86% of the revenue was generated from its semiconductor
business & the rest of it was from other embedded service businesses. Some of the red flags
which were addressed by Moschip firm were its high PE ratio, decrease in promoter
shareholding and negative ROE.

9. Details at a Glance
Face Value: ₹2
Net Profit Margin: -8.7
Current Ratio: 0.65
Promoter’s Holdings: 55.31%
ROE: -16.71%
EPS: ₹0 Dividend Yield: 0
ASM Technologies

10. The holding firm ASM Technologies Ltd. is situated in India. The company provides services to
markets in Japan, the US, the UK, the Middle East, India, and Singapore. ASM’s strength is in the
design and development of PVD, CVD, RTP, etc. They are currently working on developing a
Modular Transfer Chamber (MTC) to increase packing productivity and a Vaccum Cassette Unit to
transport wafers in a vacuum environment for their semiconductor industry.
This company’sfundamentals are improving as seen by its FY21 net profit of ₹8.51 crore, which
increased by 585% from the same period the previous year and has ₹137.39 Cr. in revenue.
61.84% of the shares are held by the promoter, while 0 shares have been pledged to date

11. Long-term project expenditures for the company have increased year over year,
which could be a cause for concern. Also, the company’s DE ratio stands at .55
which is another thing to make a note of.
Details at a Glance
Face Value of the stock:₹10
Net Profit Margin: 6.26
Promoter’s Holdings: 61.84%
ROE: 16.04%
EPS: ₹13
Dividend Yield:1.32%

12. SPEL Semiconductor Ltd.
An Indian-origin firm- SPEL Semiconductor Ltd. provides Integrated Circuits to various other industries in
India & abroad. It is the first and only firm that deals in assembling & testing IC in India and supplies it
further. ICs are often used in phones, smartwatches, laptops, etc. Their biggest clients are fabless
companies and integrated device manufacturers from the US, Asia & Europe.
In FY21, this business had a standalone revenue of ₹15.92 Cr and posted a ₹8.63 Cr net loss. Earnings from
the semiconductor company’s non-core operations are on the rise, which could be dangerous. The
promoter, on the other hand, held a 59.17% stake with no promoter pledge.

13. Ruttonsha International Rectifier Ltd
Ruttonsha International is a traditional semiconductordevice manufacturer in India. It deals in thyristors,
rectifiers, and power modules. It produces semiconductorswith a range of current densities between 10
and 12,000 amps and voltage groups between 200 and 5,000 volts.
Additionally, it has a 25-year technical partnershipwith the United States’ International Rectifier
Corporationfor the productionof power semiconductors. Its products are used in a variety of industries,
including aerospace, defence, and the productionof electricity.
Additionally, the business now owns a 100% share in Vision Power Electronics Private Limited.

14. For FY21, the company’s net profit was Rs 1.33 Cr and its revenue was Rs 30.07 Cr. However, it should be
highlighted that during the past few years, the company has not been able to produce sufficient cash
flows.
Details at a Glance
Face Value: ₹10
Net Profit Margin: 4.43
Promoter’s Holdings: 71.75%
ROE: 6.23%
EPS: ₹4
Dividend Yield: 0%

15. The Bottom Line
There has been a boom in the semiconductor industry in India & around the globe in the past years.
There are enormous other ways by which the industry can be tapped and will grow tremendously if all
the opportunities are considered well enough. These best semiconductorstocks in India have certain
setbacks which will evolve with time and innovation in technology as well.
Perhaps, it is always suggested to invest only when you’ve thoroughly analysed. So, research the best
semiconductorstocks in India and then bottle up your money in any stocks.