Riding the AI wave: 5 Indian companies poised to capitalize on the semiconductor boom
Semiconductors, often touted as the "new oil", are indispensable in today’s world. From powering everyday devices like microwaves to enabling transformative technologies like AI and 5G, these tiny chips are behind the technological advancements shaping our future.
With the rise of AI, the demand for high-performance chips has surged. This presents a significant opportunity for companies specializing in semiconductor design and manufacturing. Here are five Indian companies well-positioned to capitalize on this crucial sector:
HCL Technologies:
A global IT services powerhouse, HCL Tech is at the forefront of the semiconductor revolution, securing deals in growth segments like AI and chip design.
HCL Tech
recently helped a US-based financial services firm modernize its data insights for risk reporting, showcasing its talent in AI integrations.
Their work with a European semiconductor technology giant seeking to augment its chip development program exemplifies HCL Tech’s ability to deliver across various phases of chip design, from verification and quality checks to performance analysis and physical design.
Adding to their abilities, HCL Tech also boasts wins in generative AI (GenAI), incorporating AI capabilities into everything they do. They are also working with a European semiconductor company toieDesign ultra-efficient models for low-cost IoT microcontrollers.
Financially, HCL Tech performs strongly, posting revenues of ₹285.9 billion for Q2FY25 with an operating profit of ₹63.7 billion. A significant milestone involved their collaboration with AWS and Google Cloud to accelerate GenAI adoption. Despite industry challenges, HCL Tech’s management remains confident in their future, predicted on a robust pipeline and strategic initiatives.
Bharat Electronics Ltd:
Bharat Electronics Ltd (BEL), an Indian state-owned Defence company, is making waves in the semiconductor space. Focusing on manufacturing electronic equipment for the Indian Armed Forces, BEL is venturing into the civilian sector.
In recent months, BEL signed MoUs with AAI, Delhi Metro, IISc, and UAS, paving the way for increased civilian orders. The company’s impressive launch of 40 new products in FY24 highlights its strong focus on innovation. Its Q2FY25 revenue grew by 15%, fuelled by a strong order book. In the same period, they secured new orders worth ₹75 billion, bringing their total order book to ₹750 billion. Higher revenue translated into a 38% YoY rise in operating profit.
BEL expects further success. Their
looks ahead with projected growth between 15-17%
CG Power & Industrial Solutions Ltd:
CG Power & Industrial Solutions Ltd, also known as Crompton Greaves Power
deals them the leading player in the Indian semiconductor and Electronics manufacturing space.
They recently ventured into joint venture with Renesas Electronics and Stars Microelectronics. This
partnership will establish an OSAT facility in India, focusing on packaging, assembly, and testing semiconductors.
This strategic move aligns with the global need for more semiconductor chips and
positions CG Power well for future growth. Their Q2FY25 financials evidence this. Reporting revenues of ₹24.1 billion, reflecting a 20.5% YoY growth.
The company announces sustained growth, fueled by countrywide supportive government policies, and anticipates further growth.
Kaynes Technology India Ltd
A prominent integrated electronics manufacturer, Kaynes Technology operates in a few industries including Automave
This company boasts end-to-end solutions across diverse sectors:
