- Why India's Semiconductor Push Matters for Companies
- CG Power: One of the Most Direct Listed Semiconductor Plays
- Kaynes Technology: Can Semiconductor Manufacturing Become Its Next Growth Engine?
- MosChip Technologies: An Asset-Light Semiconductor Opportunity
- RIR Power Electronics: A Smaller Silicon Carbide Bet
- How Are These Four Semiconductor Stocks Different?
- Government Incentives Reduce Capex Risk, Not Business Risk
- What Should Semiconductor Stock Investors Watch Now?
- Author's Take
India's semiconductor ambitions are beginning to move from policy announcements to actual manufacturing.
Under the first Semicon India programme, the government approved 12 semiconductor manufacturing projects involving investments of around ₹1.64 lakh crore. The push has now expanded further with Semicon 2.0, which has an overall outlay of ₹1.275 lakh crore and aims to develop not only semiconductor manufacturing, but also chip design, equipment, materials and other parts of the ecosystem.
For investors, however, simply knowing that India is spending heavily on semiconductors is not enough.
Most of India's largest semiconductor projects are being developed by unlisted companies such as Tata Electronics and Micron India. This makes the number of listed companies with meaningful direct exposure relatively small.
Among listed companies, CG Power, Kaynes Technology, MosChip Technologies and RIR Power Electronics offer four very different ways to participate in India's semiconductor opportunity.
Why India's Semiconductor Push Matters for Companies
The semiconductor industry requires large upfront investments. Companies need to build manufacturing facilities, install expensive equipment, qualify customers and operate factories at sufficient scale before they can generate attractive returns.
Government support reduces some of this initial burden. Under India's semiconductor incentive framework, eligible projects can receive significant fiscal support towards their project costs. States can provide additional incentives as well.
This can make projects financially easier to build, but there is an important distinction investors need to understand.
Government incentives can help companies build semiconductor capacity. They cannot guarantee that this capacity will generate profits.
Once the plant is operational, companies still need customers, high utilisation, good manufacturing yields and attractive margins. That makes the next few years particularly important for listed companies that have already started investing.
CG Power: One of the Most Direct Listed Semiconductor Plays
CG Power has traditionally operated in electrical equipment such as motors, transformers and switchgear. However, the company is now building a significant semiconductor business.
Through CG Semi, a joint venture involving CG Power, Renesas Electronics and Stars Microelectronics, the company is establishing semiconductor assembly and testing facilities in Gujarat.
The overall semiconductor project involves investment of around ₹7,600 crore over five years.
Importantly, CG Power does not have to fund this entire amount itself. Its semiconductor project has received approval for central government fiscal support of up to approximately ₹3,501 crore, along with additional support from the Gujarat government.
Commercial production at CG Semi's first OSAT facility started in July 2026.
OSAT stands for outsourced semiconductor assembly and test. Instead of manufacturing semiconductor wafers, companies such as CG Semi take chips produced by foundries and perform processes such as packaging, assembly and testing before they are supplied to customers.
CG Power already reports semiconductor revenue as a separate segment.
In FY26, the semiconductor business generated around ₹503 crore of revenue, but reported a segment loss of approximately ₹108 crore.
However, investors should not assume that this revenue came from CG's newly commissioned semiconductor plant. A large part of the existing revenue comes from the semiconductor design and RF business acquired from Renesas.
The new manufacturing facility has only recently started commercial operations.
So the next phase of the CG Power semiconductor story is no longer about announcing capex.
The important question is whether the company can increase customer volumes, improve utilisation and eventually turn the semiconductor segment profitable.
Kaynes Technology: Can Semiconductor Manufacturing Become Its Next Growth Engine?
Kaynes Technology is another listed company making a large semiconductor investment.
Unlike CG Power, Kaynes already operates within the electronics manufacturing ecosystem. It manufactures electronic products and components for industries such as automotive, industrial, aerospace, defence and railways.
Its semiconductor subsidiary, Kaynes Semicon, is setting up an OSAT facility with an approved project investment of around ₹3,307 crore.
Commercial production began in March 2026. This is an important development because Kaynes has moved from simply announcing semiconductor ambitions to actually producing semiconductor packages.
But investors face one challenge when analysing the semiconductor opportunity. Kaynes does not yet provide semiconductor revenue and profitability as clearly as CG Power does.
That means investors currently cannot easily determine how much of Kaynes' growth is coming from the new semiconductor business.
Over the next few quarters, therefore, investors should watch whether the OSAT facility begins generating meaningful revenue, how quickly customers are added and whether returns justify the large investment being made.
MosChip Technologies: An Asset-Light Semiconductor Opportunity
MosChip represents a completely different semiconductor investment thesis. CG Power and Kaynes are investing heavily in physical manufacturing capacity. MosChip primarily operates in semiconductor design and engineering services.
The company helps customers with areas such as chip design, verification, embedded systems and product engineering.
MosChip generated around ₹585 crore of revenue in FY26, with the business continuing to expand.
It also has direct exposure to India's semiconductor policy through the government's Design Linked Incentive, or DLI, programme.
MosChip received approval under the scheme for developing a smart energy meter integrated circuit.
This matters because India does not only want companies to assemble foreign-designed chips. The longer-term objective is also to develop semiconductor designs and intellectual property within India.
MosChip therefore provides a much more asset-light way to participate in the semiconductor opportunity.
It does not need to spend thousands of crores building manufacturing plants. But that also creates a different question for investors.
A large part of MosChip's business currently comes from semiconductor engineering and services. The bigger opportunity would be if the company can gradually build more proprietary semiconductor products and intellectual property.
That could create higher-value and potentially more scalable revenue compared with simply providing engineering services.
RIR Power Electronics: A Smaller Silicon Carbide Bet
RIR Power Electronics is much smaller than CG Power or Kaynes, but its semiconductor exposure is more concentrated.
The company already manufactures power semiconductor devices and is expanding into Silicon Carbide, or SiC, semiconductors.
SiC semiconductors are particularly useful in applications that require high power efficiency and the ability to operate at high temperatures and voltages.
This makes them increasingly relevant for electric vehicles, charging infrastructure, solar inverters, energy storage systems, industrial equipment and data centres.
RIR is developing a semiconductor manufacturing project in Odisha with an estimated investment of around ₹618 crore.
The project has also received fiscal support from the Odisha government.
RIR already has an operating semiconductor business, meaning investors are not entirely dependent on a future project becoming operational.
However, there is also a much higher execution risk.
A ₹618 crore investment is significant compared with the size of RIR's existing business. Successful commissioning, customer acquisition and utilisation of the new facility will therefore matter much more for RIR than a similar-sized investment would for a much larger company.
This potentially gives RIR greater upside if the project succeeds, but also creates higher risk if execution is delayed or demand does not materialise as expected.
How Are These Four Semiconductor Stocks Different?
The four companies may all benefit from India's semiconductor push, but investors are effectively betting on very different businesses.
| Company | Semiconductor opportunity | Current stage | What investors should track |
| CG Power | Semiconductor design + OSAT packaging | Commercial manufacturing started | Semiconductor revenue, utilisation and reduction in segment losses |
| Kaynes Technology | OSAT integrated with electronics manufacturing | Commercial production started | Semiconductor orders, revenue contribution, margins and return on capex |
| MosChip Technologies | Semiconductor design, engineering and IP | Existing revenue-generating business | Growth in semiconductor design and proprietary product/IP revenue |
| RIR Power Electronics | Power semiconductors and Silicon Carbide | Existing business + new facility under development | Odisha plant commissioning, customer orders and returns on ₹618 crore capex |
This difference is important because these companies should not be analysed using the same framework.
CG Power and Kaynes are becoming semiconductor manufacturers and therefore need high capacity utilisation to generate returns.
MosChip has lower manufacturing capex but needs to build higher-value semiconductor intellectual property.
RIR is betting on a relatively specialised segment of the industry where growth in EVs, renewables and power electronics could drive demand.
Government Incentives Reduce Capex Risk, Not Business Risk
This is probably the most important point for investors looking at semiconductor stocks. When a company announces a semiconductor project worth ₹3,000 crore or ₹7,000 crore, investors should not immediately assume that the company itself will fund the entire project.
Government incentives can cover a substantial portion of eligible costs.
CG Power is a good example. Its semiconductor project involves around ₹7,600 crore of investment, but central and state government support significantly reduces the amount of capital that ultimately has to come from the company and its partners.
That improves project economics. But government support only solves one part of the problem. After a semiconductor facility is built, companies still need to move through several stages:
Plant commissioning, customer qualification, orders, higher utilisation, revenue growth, profitability and return on capital.
The difference between a successful and unsuccessful semiconductor investment will ultimately be decided near the end of this chain, not at the announcement stage.
What Should Semiconductor Stock Investors Watch Now?
India has already crossed the first major milestone by attracting investments and getting some semiconductor facilities into commercial production. The next stage will be more difficult.
Investors should increasingly focus on whether these companies can convert installed semiconductor capacity into actual revenue.
- For CG Power, the biggest indicator will be whether semiconductor losses begin narrowing as its OSAT business scales.
- For Kaynes, investors need clearer evidence that semiconductor manufacturing is becoming a meaningful contributor to revenue and profit.
- For MosChip, the opportunity lies in moving further from engineering services towards semiconductor products and intellectual property.
- And for RIR Power, execution of the large SiC expansion relative to the company's existing size will be critical.
Author's Take
India's semiconductor policy has created a real long-term opportunity for listed companies, but the easy part of the story may now be behind us.
Government approvals, subsidies and large capex announcements helped establish the semiconductor theme. From here, investors will need to judge companies on actual execution.
That means the most important semiconductor metric may no longer be how much a company plans to invest.
It will increasingly be how much semiconductor revenue and profit it can generate from every rupee of capital invested.
Companies that successfully move from government-supported capex to commercially viable semiconductor businesses could benefit significantly from India's manufacturing push. But companies that fail to achieve sufficient scale could still struggle despite receiving attractive government incentives.