India’s semiconductor push is rapidly accelerating, and three early-mover companies — Kaynes Technology, RIR Power, and MosChip Technologies — are emerging as key beneficiaries of the country’s massive digital transformation. With India set to build a ₹9 trillion semiconductor market by 2030, these mid-cap, small-cap, and micro-cap players are positioning themselves at the center of the upcoming chip boom.
India’s Semiconductor Mission Gains Momentum
India currently imports nearly 90% of its chip requirements, making it vulnerable to global supply shocks, as seen after the pandemic. To cut dependence and build domestic capability, the government launched the India Semiconductor Mission (ISM) with a total outlay of ₹760 billion. As of August 2025, 10 semiconductor projects worth ₹1.6 trillion have been approved across six states.
McKinsey projects that the Indian semiconductor industry could reduce import dependence by $10–20 billion, while the India Electronics and Semiconductor Association estimates the market will nearly double from ₹4.5 trillion in 2024 to ₹9 trillion by 2030.
This backdrop has created massive opportunities for companies integrating into the semiconductor value chain — from design and manufacturing to packaging and testing.
1. Kaynes Technology: Leading India’s Manufacturing & OSAT Expansion
Kaynes is transitioning from an EMS provider to a full-spectrum ESDM and semiconductor company. Its biggest leap comes from entering the OSAT (Outsourced Semiconductor Assembly and Testing) and HDI PCB businesses.
- Investment: ₹33 billion OSAT facility in Gujarat
- Government support: 50% from Centre, 20% from Gujarat
- Chip output: Expected 6 million chips per day
- First Indian company to deliver a commercial multichip module (IPM5)
Kaynes’ revenue jumped 47% YoY in H1 FY26 to ₹15.8 billion, with PAT rising 77% to ₹1.9 billion. Its ₹81 billion order book offers three years of revenue visibility.
2. RIR Power: India’s Silicon Carbide (SiC) Specialist
RIR Power operates in two synergistic domains — Semiconductor Devices and Power Equipment — and is now building India’s first Silicon Carbide manufacturing facility in Odisha.
- Investment: ₹6.2 billion
- Focus: High-voltage SiC MOSFETs (3.3 kV to 10 kV)
- Target sectors: Railways, defence, EVs, grid infrastructure, renewables
The company reported 17% revenue growth and 64.8% PAT growth in H1 FY26, supported by rising demand for high-performance power electronics.
3. MosChip Technologies: India’s First Fabless Semiconductor Company
MosChip is the micro-cap play focusing on indigenous chip design and engineering.
Key initiatives include:
- Smart Energy Meter IC under the Government’s DLI Scheme
- Indigenous AUM Processor (HPC SoC) co-developed with C-DAC on TSMC 5 nm
- Expanding semiconductor design services; 10 of the top 20 global chip companies are clients
MosChip delivered 37.4% revenue growth and 35.3% PAT growth in H1 FY26, led by strong demand in silicon engineering and digital product development.
Valuations Running Ahead of Fundamentals
While growth prospects are strong, both RIR Power and MosChip have seen sharp valuation run-ups driven by semiconductor euphoria. Analysts caution that execution risks remain high, especially in an industry with long gestation periods and steep competition.
Kaynes, although financially stronger with committed orders, is trading at 103x earnings — leaving limited margin for error.
Experts say the sector is still in its early stages, and the coming years will reveal which companies can scale sustainably.
Originally published on 24×7-news.com.
