Top Semiconductor Stocks in India to Watch in 2025 – HCL Tech, BEL, ABB India

Semiconductor industry lies at the heart of the modern digital economy. semiconductor industries powering everything from smartphones and laptops to electric vehicles, data centres, and artificial intelligence applications.

As global demand for high-performance computing and advanced electronics devices continues to surge. Reason is semiconductor companies are becoming increasingly vital to technological innovation and economic growth.

In recent years semiconductor sector has undergone a remarkable transformation, driven by breakthroughs in chip design, increased automation and government-backed initiatives to boost domestic chip production.

However semiconductor industry also faces challenges — from intense competition and cyclical volatility to supply chain disruptions. For investors, this makes it crucial to identify companies with strong fundamentals, strategic advantages and long-term growth potential.

In India, initiatives like Make in India, PLI (Production Linked Incentive) schemes and Startup India are creating a favourable ecosystem for semiconductor manufacturing.

For those looking to capitalise on the semiconductor boom, building a watchlist of resilient, innovative, and market-leading companies is a smart first step.

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Top Semiconductor Stocks in India to Watch in 2025

Here we are showing three leading semiconductor related stocks in India that stand out for their market leadership, innovative edge and promising financial outlooks.

1. HCL Tech

HCL Tech is among the top five Indian IT services companies by revenue, offering an integrated portfolio across:

• IT & Business Services – Application, infrastructure, digital transformation, analytics, cloud-native, and cybersecurity services.

• Engineering and R&D Services – End-to-end product lifecycle support across industries, including software, embedded systems, VLSI, and mechanical engineering.

• HCL Software – Modernised software products and IP-led offerings for business apps, data analytics, security, and compliance.

Geographic reach:

• 65% revenue from the Americas

• 28% from Europe

• 7% from the rest of the world

Industry focus: Financial services, manufacturing, life sciences, technology, and others.

HCL Tech plays an active role in the semiconductor industry, offering chip design, manufacturing, and testing solutions. The company leverages AI, IoT, and cloud computing to drive innovation and efficiency for global semiconductor leaders.

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In May 2025, India’s cabinet approved a semiconductor plant — a joint venture between HCL Group and Taiwan’s Foxconn — costing ₹37 billion (US$435 million). Located near Jewar airport, Uttar Pradesh, the plant will produce 36 million display driver chips annually.

Guidance: Revenue growth of 2–5% in constant currency terms with EBIT margins of 18–19%.

2. Bharat Electronics Ltd (BEL)

Founded in 1954, BEL develops advanced electronic equipment for India’s defence sector, including:

• Radar and fire control systems

• Weapon systems

• Communication and C4I solutions

• Electronic warfare systems

Diversification: BEL has expanded into homeland security, smart city solutions, space electronics, medical devices, cybersecurity, and renewable energy systems.

Geographic reach:

• 96% revenue from India

• 4% from exports to markets including France, the US, Spain, Israel, China, Germany, and ASEAN countries

Infrastructure: 9 manufacturing units, with major facilities in Bangalore and Ghaziabad.

In June 2025, Tata Electronics and BEL signed an MoU to explore semiconductor fabrication (Fab), OSAT (Outsourced Semiconductor Assembly and Test), and chip design services. This aligns with India’s push for semiconductor self-reliance.

Guidance: Revenue growth over 15% with EBITDA margins of 23–25%.

3. ABB India

ABB India (subsidiary of ABB Ltd) is a leading supplier of automation, power, and electrification solutions critical to semiconductor manufacturing operations.

Business segments:

• Electrification - 43% of revenue

• Motion - 34% of revenue

• Process Automation - 18% of revenue

• Robotics - 5% of revenue

Geographic reach:

• 90% domestic revenue

• 10% international sales

ABB India operates 25 manufacturing plants across 5 locations and exports to 30+ countries. In March 2025, the company partnered with AI startup UptimeAI to enhance industrial asset performance management.

While ABB India doesn’t manufacture semiconductors, it provides essential technologies that keep chip fabrication plants running efficiently.

Management view: Cautious due to a volatile macro environment, but remains strategically aligned with industrial digitisation trends.

Conclusion - Semiconductor Stocks

Semiconductor industry is a cornerstone of technological progress, enabling advancements in consumer electronics, AI, defence and industrial automation. With rising global digitisation, geopolitical shifts, and a push for domestic supply chains, India’s semiconductor ambitions are gaining momentum.

HCL Tech, BEL, and ABB India each bring unique strengths to the table — from direct semiconductor manufacturing to supporting critical electronics infrastructure.

While Semiconductor industry is not without risks. These Semiconductor companies demonstrate strong fundamentals, strategic positioning and alignment with India’s long-term manufacturing vision.

For investors seeking exposure to this high-growth in Semiconductor sector, a diversified approach across such players could provide both stability and opportunity.

As always, thorough research and a clear investment strategy remain essential before making any decisions.