Introduction

Semiconductors are an essential component of electronic devices that are used in all modern appliances such as Transportation, Communications, Military systems, Healthcare and countless other applications.

What is a semiconductor chip?

Semiconductor chips are also known as integrated circuits or tiny chips. It is usually comprised of silicon, germanium and gallium arsenide and these elements are called staircases.

Silicon is the prime and pure semiconductor that are used in the computer, microelectronics industries, solar panels and so on. And the second most common semiconductor is gallium, which is used in solar cells, microwave-frequency and diodes etc.

Semiconductors play a crucial role in our lives. We cannot imagine life without electronic devices like smartphones, TVs, computers, and all the advanced medical equipment.

India Rely on Import

India mainly imports semiconductors from China, the USA, Japan, Taiwan and South Korea. The total imports are approximately ($24 Billion). Both Taiwan and South Korea collectively control nearly 50% of the global semiconductor chip market. The USA and China are the largest customer of these nations. Interestingly, China imports around 40% of its Chip requirements from these two countries.

Future of the Semiconductor industry in India 2024

As par the report, the semiconductor industry in India grow up to $34.3 Billion in 2023 and is predicted to attain $100.2 Billion by 2032.

The union budget 2024 has exponentially increased the total allocation of money for the development of semiconductors and display manufacturing. The total allocated is ₹6,903 Crs, up from the ₹3,000 Crs in the previous year. In addition, this budget also provides 50% fiscal support.

By increasing allocation and bolstering fiscal support for the development of semiconductors. Such sorts of patronage are expected to drive significant growth and large investment in these sectors. It will also enhance India’s position in the global semiconductor market.

This initiative is expected to increase ample of employment opportunities, the government is also forecasting the direct creation of 20,000 high-tech jobs and, in additional, 60,000 indirect jobs in the Semiconductor industry in India.

Government Initiatives 2024

Credit Guarantee Scheme for the MSME Sector.

Recently, Finance Minister Nirmala Sitharaman announced a new credit guarantee scheme for MSMEs in the manufacturing sector. This scheme bestows credit to small businesses without having collateral security.

The main purpose of this scheme is to mitigate the risk to financial institutions and encourage them to lend money to small businesses: farming equipment, bicycle components, dry-cleaning, beauty parlours etc.

Semiconductor and Display Manufacturing ecosystem

The budget offers up to 50% of the project cost to design a display fabrication unit in India and other local bodies may also provide financial assistance.

Design linked Incentives Scheme

This scheme encourages semiconductor design manufacturers and small businesses by providing financial incentives. This scheme bestow infrastructure support across various stages of development and deployment of semiconductor design for integrated Circuits, IP Cores and semiconductor linked design(s) over a period of 5 years.

Types of Semiconductors

There are two kinds of semiconductor one is p-type and another one is n-type.

1) P-type semiconductor

•    It is a positively doped semiconductor.
•    Acceptors of Electrons.
•    Trivalent Impurities (Boron, Gallium, Indium) etc.

2)  N-type semiconductors

•     It is a negatively doped semiconductor.
•     Donor of Free Electron.
•     Pentavalent Impurities (Nitrogen, phosphorus, Arsenic) etc.

Both PN-Junction rely on the diffusion of electrons from N-Type to P-Type.

Semiconductor companies in India.

The demand for semiconductor chips is growing exponentially in India, with companies like Bharat Electronics Limited (BEL), HCL Technologies Limited, Dixon Technology Limited etc.

Recently, the Indian government has also introduced various initiatives to boost the semiconductor manufacturing industry in India, such as Credit Guarantee Scheme for MSME Sector, Semiconductor and Display Manufacturing ecosystem, Design linked Incentives Scheme.

This semiconductor industry plays a very crucial role in the development of the Indian economy. The government aims to reduce reliance on imports and help the country to become self-sufficient.

Semiconductors Stocks in India 2024

India’s semiconductor industry has been gaining tremendously. It’s attracting lots of FDI and FII from various countries. As we know, semiconductors are typically made of silicon, which conducts electricity.  It is used in all modern appliances such as transportation, communication, military systems and more.

Here is the list of the Top 4 Semiconductors Stocks in India.

1) Bharat Electronic Limited

BEL is the Public Sector Undertaking operated under the Ministry of Defense, the Government of India. Founded in 1954, and their headquarters in Karnataka (Bangalore). It manufactures various electronic products and systems for defense and civilian applications. It has a number of product ranges including, weapons systems, electronic warfare systems, network and cybersecurity, solar, airport solutions and many more. It plays a very vital role in the Indian defense sector and also contributes to Indian GDP.

In 1991, BEL was listed on the stock exchanges and the listing was allowed to be traded publicly on the BSE and later on the NSE.

2) HCL Technologies Limited

HCL Technologies Limited, foundation by Shiv Nadar in 1991. This company mainly provides software and technology development services. Over a few years, HCL has had a robust focus on the semiconductor industry and offers a wide range of services that cater to semiconductor design and manufacturing.

3) Tata Elxsi Limited

Tata Elxsi is one of the largest technology service provider company in India which provides patronage to the semiconductor industry, founded in 1989, and has headquarters in Karnataka(Bengaluru). This Tata Group company provides services in the area of Artificial Intelligence, Cloud computing and this company is known for its cutting-edge technology and design capabilities.

In 1999, the Tata Elxsi made its Initial Public Offering(IPO) and got listed on both the Bombay stock exchange and the national stock exchange during the same year.

4) Dixon  Technology

Dixon Technology was founded in 1993. Dixon initially manufactured televisions and Philips video records. Apart from this, the company also manufactured AC, microwave ovens and DVD players and more. Dixon Technology has been focusing on the semiconductor sector as part of its growth strategy. The company is also involved in the assembly and manufacturing of various semiconductor products, including chipsets, communications devices and many other electronic devices.

Conclusion

Semiconductors are very essential components in the modern digital era. We cannot imagine life without semiconductors. Recently, the Indian government emphasised and encouraging semiconductor manufacturers and small businesses by providing financial support. The Indian government is promoting the establishment of semiconductor industry and invests in skill development. These efforts not only aim to reduce import dependency but also to position India as a key player in the global semiconductor market.