Semiconductor are the unsung heroes powering almost everything electronic! Found in everything from smartphones and computers to electric vehicles and medical equipment, these tiny chips keep the world running. They even sneak their way into air conditioners, rice cookers, and commercial equipment like ATMs and trains.
Take electric vehicles (EVs), for example: they require hundreds of semiconductor to function smoothly. And as tech evolves with AI and IoT, global demand for these chips is skyrocketing. But… there’s been a slight hiccup. A global semiconductors shortage has created major supply chain headaches.
So let’s dive into this article and understand the story behind India’s Semi conductor surge and what the key factors are to look forward to.
What’s Causing the Global Chip Shortage?
Geopolitical Tensions: With Southeast Asia, China, and Taiwan leading the chip-making scene, geopolitical factors such as the US-China trade war and China’s tech crackdown have ‘thrown mud’ into production.
Booming Demand: With the rise of automation, EVs, and remote work, industries are demanding more chips than ever, but production just can’t keep up.
India- The Rising Star in the Semiconductor Game:
India is stepping into the spotlight with SEMICON India 2024, taking place from September 11-13, 2024, in Greater Noida. This event, hosted in partnership with the India Semiconductors Mission (ISM) and Ministry of Electronics and IT (MeitY), will highlight advancements in smart manufacturing, supply chain, sustainability, and more.
With a goal to position itself as a semiconductors powerhouse, India’s market could hit $1 trillion by 2030! Big names like NXP, Foxconn, and Tata Electronics are lining up, and even Prime Minister Narendra Modi is set to inaugurate this game-changing event.
Why Invest in Indian Semiconductor Companies?
India is gearing up to become a major semiconductor hub, with the government rolling out initiatives like the PLI scheme and the Semicon India Program. Both domestic and international players are jumping in to build semiconductors manufacturing units in India, and here are some of the key projects already in motion:
- Dholera, Gujarat – Semiconductor Fab (50,000 wafers/month)
India’s first semiconductor fab is coming up in Dholera, thanks to a collaboration between Tata Electronics Private Limited (TEPL) and Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC). With a whopping INR 9100 billion investment, this facility will churn out high-performance chips for EVs, telecom, defense, and more. First chip rolling out by the end of 2026! - Morigaon, Assam – Semiconductor ATMP Unit
Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) is investing INR 2700 million to set up an ATMP unit with a 48-million-chip daily capacity. This unit will focus on automotive, consumer electronics, and more. - Sanand, Gujarat – Specialized Semiconductor ATMP Unit
CG Power, in collaboration with Japan’s Renesas Electronics and Thailand’s Stars Microelectronics, is launching an ATMP unit with a daily capacity of 15 million chips for industrial, automotive, and power applications. Given these developments, investing in semiconductors stocks could be highly rewarding, assuming these plans and partnerships are successfully implemented.
Top Indian Semiconductor Stocks You Should Watch!
If you’re thinking of investing in semiconductors, now might be the perfect time! Here’s a quick look at some of the leading semiconductors stocks listed on the NSE:
– Tata Elxsi Ltd
– ASM Technologies Ltd
– Dixon Technologies (India) Ltd
– SPEL Semiconductor Ltd
– Moschip Technologies Ltd
– Ruttonsha International Rectifier Ltd
– HCL Technologies Ltd
– MIC Electronics Ltd
– Surana Telecom and Power Ltd
– Vedanta Ltd
– Solex Energy Ltd
With India’s semiconductor story just getting started, the future looks incredibly exciting! So, keep an eye on these developments and watch India power its way to the top of the semiconductor world!
That’s all for today. We’ll be back with more exciting reports soon. Until then,
Happy Trading!
Commodity Samachar Securities
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