Shares of semiconductor-related stocks witnessed strong buying on Wednesday after Prime Minister Narendra Modi reaffirmed that India is set to play a major role in driving the global semiconductor industry. Addressing the SEMICON India 2024, PM Modi said that India is committed to building and growing its semiconductor infrastructure.  

“India's semiconductor sector is on the brink of a revolution, with breakthrough advancements set to transform the industry,” he says on the first day of the three-day SEMICON India 2024 summit. 

Speaking at the event, the PM said India's electronic sector has become more than $150 billion, which in the next decade should reach $500 billion. "By this, around 60 lakh jobs will be created for India's youth," he says.

Boosted by PM Modi’s pitch for semiconductor infrastructure development in India, shares of semiconductor-related stocks surged up to 10% intraday today. Surana Solar shares touched its 10% upper circuit limits, while RIR Power Electronics and SPEL Semiconductor stocks were locked in its 5% upper circuits.  

Among others, shares of Moschip Technologies, Dixon Technologies (India), and CG Power gained up to 4%. On the other hand, Vedanta and Tata Elxsi were down in the range of 1-3%.

PM Modi, during the inauguration event of SEMICON India 2024 at the India Expo Mart today, told the industry stakeholders that it's the right time to be here and that the government will do everything possible to make India a "semiconductor powerhouse".

Estimations indicate that the Indian semiconductor industry is set to hit $100 billion by 2030. India's semiconductor industry is equipped with "special diodes", says the PM. "Here our energy flows in both directions -- you invest and create value, while the government provides stable policies and ease of doing business."

Speaking at the event, Randhir Thakur, CEO & MD, Tata Electronics, says the company’s two projects received approval from the Government of India in record time, setting a global benchmark. “This was possible due to the outstanding collaboration demonstrated by India's Semiconductor Mission consistent with Prime Minister Narendra Modi’s message of operating with a sense of urgency.”

Hidetoshi Shibata, CEO, Renesas, says, “We are privileged to establish one of India's first semiconductor assembly and testing facilities in Gujarat, and the construction is already underway.”

Luc Van, CEO of IMEC, says it is more than clear that India is ready to boost its semiconductor manufacturing. “Prime Minister Narendra Modi has also expressed his interest and commitment to set up and invest in a long-term R&D strategy for this business, which is extremely important.”

Kurt Sievers, CEO of NXP, the event marks a major milestone on the transformational journey of India. “It is a significant milestone because, in all my experience in the semiconductor industry, there are three attributes for success: ambition, trust, and collaboration. Looking at all of you is a strong sign that collaboration is starting to come together in India.”

“SEMICON India 2024 is the first global semiconductor event to be held in India. When compared to similar events in other parts of the world, it is four or five times larger in scale for a first-time semiconductor event,” says Ajit Manocha, CEO of SEMI.

India is the 8th country in the world where a grand programme related to the global semiconductor industry is being conducted.

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