The mid, the small, & the micro: 3 stocks leading India’s Rs 9 trillion chip race

Semiconductors are the foundation of today’s digital economy. They’re tiny chips that power everything from your smartphone and automobile to defence and medical devices. However, India currently imports nearly 90% of its domestic needs. This dependence on imports makes India vulnerable to supply chain risks, as seen in the post-pandemic period.

To boost semiconductor manufacturing, the Indian government launched the India Semiconductor Mission (ISM) with an outlay of ₹760 billion. Of this, 10 projects with cumulative investments of around ₹1.60 trillion in 6 states have already been approved (as of August 2025), with more to follow.