Why Lower Tariffs Could Be a Game Changer for India’s Semiconductor Industry?
The Indian Government is pushing the “Make in India” initiative into all sectors including the semiconductor manufacturing industry. Recently, John Neuffer, the President and CEO of the US Semiconductor Industry Association (SIA), highlighted on India that implementing zero tariffs on semiconductor manufacturing can benefit the country and become a significant player in the global supply chain.
John stated that while India is progressing in expanding its chip manufacturing, it must offer lower tariffs and adopt a more conducive trade policy. He said, “US is already getting zero tariff treatment from chip supply chain partners around the world but not from India”. He further highlighted that investing in skill development for chip manufacturing, which is beyond just design, would be a crucial step for India’s long-term success in this sector in an interview as per sources.
Further, Neuffer also expressed concerns about the Trump administration’s proposal to impose 100 percent tariffs on semiconductor imports from Taiwan and warned that such a move could disrupt US supply chains and raise manufacturing costs.
According to SIA, The global semiconductor industry saw a 20 percent growth in 2024 and expects to be more than 11 percent in 2025. Neuffer noted that by 2032, the US plans to triple its advanced chip manufacturing while aiming to produce 30 percent of the world’s most advanced chips.
Here is the list of Indian stocks that can benefit from the Semiconductor Chip Manufacturing:
1. RIR Power Electronics
The company was formerly known as Ruttonsha International Rectifier Limited and they manufacture power semiconductor devices and high-power equipment. With over five decades of experience, they offer diodes, thyristors, power modules, and more, exporting globally with a manufacturing facility in Gujarat.
With a market capitalization of Rs. 1,613.25 Crores, the shares of RIR Power Electronics closed at Rs. 2,102.30 per equity share, down 5.00 percent from its previous day’s close price.
2. Kaynes Technology India
This Mysore-based company was founded in 1988 and is into integrated electronics manufacturing while offering end-to-end and IoT-enabled solutions. They provide services from conceptual design to manufacturing for various sectors which include automotive, aerospace, and IT, operating across eight Indian facilities. The company has started its building Outsourced Semiconductor Assembly and Test (OSAT) facility in Gujarat.
With a market capitalization of Rs. 26,480.30 Crores, the shares of Kaynes Technology India closed at Rs. 4,136.85 per equity share, down 1.11 percent from its previous day’s close price.
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3. CG Power and Industrial Solutions
This Murugappa Group company was established in 1937 and specializes in power generation, transmission, and distribution. They offer diverse electrical products and solutions, including transformers, switchgear, motors, and railway signaling systems, and serve various industries globally. Recently, they have started an OSAT facility in Gujarat.
With a market capitalization of Rs. 88,457.78 Crores, the shares of CG Power and Industrial Solutions closed at Rs. 578.60 per equity share, up 0.29 percent from its previous day’s close price.
4. Moschip Technologies
The company was founded in 1999 and is a publicly traded semiconductor and system design company. They specialize in providing silicon, product, and AI/ML engineering solutions which include ASIC design and IoT.
With a market capitalization of Rs. 3,512.97 Crores, the shares of Moschip Technologies closed at Rs. 183.85 per equity share, down 2.57 percent from its previous day’s close price.
5. ASM Technologies
ASM Technologies was established in 1992 and offers engineering services and product R&D solutions with consulting services.
With a market capitalization of Rs. 1,514.74 Crores, the shares of ASM Technologies closed at Rs. 1,286.70 per equity share, up 9.16 percent from its previous day’s close price.
Written by Santhosh
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