Semiconductors have quietly become one of the most important pieces of the global economy.
What’s wild is just how concentrated the supply chain actually is — the world’s most advanced chips are manufactured by a tiny handful of companies, in the US and China.
If that chain ever got disrupted, even briefly, the ripple effects would be felt everywhere from smartphones to cars to defence systems.
That’s exactly why India is pouring billions of dollars into building its own semiconductor base through the Semiconductor Mission.
This has put semiconductor stocks in India firmly in the spotlight, and a bunch of companies have already announced capacity expansion plans, hoping to grab a first-mover advantage before the space gets crowded.
So here are 3 semiconductor Stocks in India Scaling Manufacturing Capacity.
#1 CG Power and Industrial Solutions
First on the list is CG Power and Industrial Solutions.
CG Power and Industrial Solutions is an engineering company with a strong presence across power systems, industrial systems, and semiconductor solutions.
CG’s entry into semiconductors through Axiro in FY25 and the launch of CG Semi’s advanced OSAT facility (G1) in August 2025.
Axiro has established a strong foundation in semiconductor design, with over 150 IPs in front-end technologies and more than 200 chip designs, which have been deployed in over 600 million (m) chips globally, being strengthened further by our investment in EdgeCortix.
Axiro, generated approximately Rs 5 billion (bn) in revenue in FY26, anchored by the RF business acquired from Renesas Electronics.
Its technologies have been deployed in over 600 m chips globally.
The company has also invested in EdgeCortix to expand its capabilities in AI-focused semiconductor design.
CG Semi inaugurated its G1 OSAT facility in Sanand, Gujarat, in August 2025. The G1 facility is now operational at a peak capacity of 0.5 m units per day.
According to the Annual Report FY26, CG Power plans to further scale its semiconductor manufacturing capacity to 14.5 m chips per day with the upcoming commissioning of its G2 facility.
The company expects its G1 and G2 facilities together to represent an estimated project investment of around Rs 760 bn.
As of 10 August 2026, CG power is trading at a P/E multiple of 86.39x, compared with the industry P/E of 34.5x.
The stock is trading 37% higher so far in 2026.
CG Power and Industrial Solutions Share Price in 2026
Data Source: BSE
#2 Kaynes Technologies
Next on the list is Kaynes Technologies.
Kaynes Technologies is involved in semiconductors through its subsidiary Kaynes Semicon.
Kaynes Semicon operates across specialised engineering domains that support semiconductor products from device integration through qualification and production release.
This includes integrating assembly, packaging, reliability engineering, and test infrastructure required for industrial-scale semiconductor programs.
Kaynes Semicon manufactures semiconductor packages designed for power electronics, industrial systems, and emerging compute platforms.
According to Kaynes Semicon website, Kaynes Semicon currently has a 1,200 sq m operational pilot OSAT facility, while more than 19,000 sq m of semiconductor cleanroom infrastructure is under development. The planned setup is divided into three units, allowing manufacturing capacity to be added in stages.
Further, according to an ET report, Kaynes Semicon is in advanced discussions with global technology companies to expand into semiconductor wafer fabrication, compound semiconductors, advanced packaging, and materials and equipment manufacturing, chief executive Raghu Panicker told ET.
The company plans to pursue these areas through joint ventures and technology partnerships rather than developing the technologies independently.
It is looking to submit project applications under the next phase of the India Semiconductor Mission (ISM) by mid-August, subject to the government opening the application window.
As of 10 August 2026, Kaynes Technologies is trading at a P/E multiple of 57.27x, compared with the industry P/E of 31.3x.
The stock is also down around 5% so far in 2026.
Kaynes Technologies Share Price in 2026
Data Source: BSE
#3 SPEL Semiconductor
Last on the list is SPEL Semiconductor.
SPEL Semiconductor Limited is one of India’s semiconductor assembly and testing companies, engaged in providing integrated circuit (IC) assembly, semiconductor packaging, and testing services.
In July 2026, SPEL Semiconductor’s board approved investments in advanced packaging, semiconductor testing facilities, manufacturing infrastructure, automation and utilities as part of its expansion plans.
The company has authorised its management to apply under schemes including the India Semiconductor Mission (ISM), Production Linked Incentive (PLI) scheme and Electronics Manufacturing Cluster (EMC) scheme, along with applicable state-level semiconductor incentives.
To fund its expansion plans, the board has approved raising up to Rs 5 bn through routes including a rights issue, QIP or other permitted methods.
For now, SPEL’s expansion announcement provides a broad roadmap, but the scale and timeline of the planned capacity addition remain to be disclosed.
As of 10 August 2026, SPEL is trading at a P/E multiple of 29.33x, compared with the industry P/E of 30.5x.
The stock is trading 11% higher so far in 2026.
SPEL Semiconductor Share Price in 2026
Data Source: BSE
Conclusion
India’s semiconductor manufacturing ecosystem is moving from plans to actual production, with companies now commissioning facilities and working on the next phase of capacity expansion. Government support through the India Semiconductor Mission is also helping bring investments into areas such as assembly, packaging and testing.
That said, investors need to look beyond the semiconductor theme alone. The pace at which planned capacity is commissioned, utilisation improves and investments translate into revenue will be important factors to track. Valuations also matter, particularly for stocks that have already seen significant investor interest on the back of India’s semiconductor ambitions.
As the industry moves into its next phase, these companies will be worth tracking for how effectively they convert their manufacturing plans into actual business growth.
Investors should carefully evaluate these companies’ fundamentals, corporate governance, and valuations as key factors when conducting due diligence before making investment decisions.
Happy investing.
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