Semiconductor Stocks Extend Rally After PM Modi Reaffirms 'Made In India' Chip By Year-End

Semiconductor stocks gained on Tuesday after Prime Minister Narendra Modi inaugurated Semicon India 2025, aimed at strengthening the country's semiconductor ecosystem.

Moschip Technologies rallied significantly, closing 8.2% higher at ₹186. This marked its third straight session of gains, adding 14% to its value.

CG Power and Industrial Solutions ended 3.2% higher, adding 11% over the past three sessions. Other semiconductor-linked stocks, such as ABB India and Dixon Technologies, were largely unchanged, while Tata Elxsi closed up 1%.

CG Power's subsidiary, CG Semi, recently inaugurated India's first outsourced semiconductor assembly and test facility in Sanand, Gujarat, with an investment of ₹7,600 crore.

At Semicon India 2025, an annual conference for India's semiconductor ecosystem, Prime Minister Narendra Modi announced that India will commence commercial semiconductor production this year, reaffirming his remarks from his Independence Day speech last month.

According to reports, Electronics and IT Secretary S. Krishnan has stated that the government is finalizing the second phase of the India Semiconductor Mission (ISM), as most of the fiscal support allocated under the first phase has already been assigned.

He also emphasized that the central and state governments are expected to jointly extend $30 billion in fiscal support to the sector.

“Almost the entire funding of ISM 1.0 has been fully committed. There are two to three straggling projects still being worked out, but we are in the final stages of preparing ISM 2.0, which will soon be put in the public domain,” Krishnan reportedly said. 

Semiconductor Drive

A serious push for establishing a semiconductor ecosystem under the current government began in 2021 with the launch of the India Semiconductor Mission (ISM). With an initial outlay of ₹76,000 crore, the ISM aimed to build a strong semiconductor and display network, positioning India as a global hub for electronics manufacturing and design.

Over the last four years, India has witnessed an acceleration in semiconductor fabrication and design projects. Ten projects worth about ₹1.60 lakh crore have been approved across six states, involving both domestic and global firms.

Significant investments by companies such as Tata Electronics, Micron, HCL-Foxconn, and Kaynes Semicon highlight the growing confidence in India's semiconductor roadmap. States like Gujarat, Assam, Odisha, Punjab, and Andhra Pradesh have emerged as key hubs.

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