3 Semiconductor Stock to Watch as Union Budget 2026 Nears

According to the Imarc Group, the size of the Indian semiconductor market is projected to reach US$ 161 billion (bn) by 2033, from an estimated US$ 53.2 bn in 2024. This indicates that during the forecast period (2025-2033), the industry will grow at a CAGR of 12.45%.

A few businesses will profit as demand increases. Aside from this, the Union Budget 2026 might give the industry a little boost.

Here are a few companies from the semiconductor space you can watch. The majority of these businesses are diverse and offer services related to Outsourced Semiconductor Assembly and Test (OSAT), a crucial component of the semiconductor industry.

#1 Kaynes Technology India

First on our list is Kaynes Technology India.

The company is a leading integrated electronics manufacturing company in India, specialising in end-to-end and IoT solutions-enabled electronics manufacturing.

Through its fully owned subsidiary, Kaynes Semicon Pvt Ltd, Kaynes Technology India has made a major foray into the semiconductor industry. The company is investing Rs 33 bn to establish a semiconductor unit in Sanand, Gujarat.

According to reports in the Economic Times, the company has announced the rollout and shipment of the country's first commercially produced Multi-Chip Module (MCM) from its OSAT (Outsourced Semiconductor Assembly and Test facility.

Financial Highlights of Kaynes Technology India

Source: Equitymaster

On the financial front, Kaynes Technology India reported consolidated net sales of Rs 9,062 m for Q2 FY26, which was significantly higher than Rs 5,721 m YoY.

Net profits for Q2 FY26 came in at Rs 1,214 m from Rs 602 m in the corresponding period of last year.

In order to support its future semiconductor manufacturing operations in India, Kaynes Semicon Private Limited announced strategic alliances with leading global technology companies in mid-December: AOI Electronics Co., Ltd. (Japan) and Mitsui & Co., Ltd. (Japan).

In December 2025, the stock of Kaynes Technology India dropped sharply after Kotak Institutional Equities raised concerns over inconsistencies in the company's related-party disclosures.

#2 MosChip Technologies

Second on our list is MosChip Technologies.

With 26 years of experience in ASIC design, embedded systems, digital, and AI engineering, MosChip Technologies is a top silicon and product engineering firm.

MosChip collaborates with international OEMs to design, engineer, and deliver next-generation products in the semiconductor, automotive, industrial, consumer, and medical sectors, ranging from ASICs to AI.

Financial Highlights of MosChip Technologies

Source: Equitymaster

On the financial front, Q2 FY26 revenue from operations grew from Rs 1,256.3 m to Rs 1,469.4 m, an increase of 17%. Net profit increased from Rs 97.3 m to Rs 121.5 m, an increase of 25%.

Moving ahead, MosChip is growing its presence in Bangalore and Pune to accommodate expanding business needs. These new sites were carefully picked to provide better accessibility and convenience for workers by being near important social infrastructure.

MosChip Technologies, in December announced its role in supporting EMASS's ECS-DoT Edge AI Systemon-Chip (SoC), an ultra-low-power chip designed for always-on intelligence in wearables, drones, industrial IoT, and edge sensors.

The company provided engineering services for the silicon implementation in 22 nm technology - contributing to physical design flows, tape-out coordination, packaging, assembly, evaluation hardware, and validation activities.

To know more check the MosChip Technologies factsheet and latest quarterly results.

#3 GG Power and Industrial Solutions

Finally, we have CG Power and Industrial Solutions.

The company's diverse portfolio includes consumer appliances like fans and water heaters, industrial motors, drives, transformers, switchgear, and traction motors for Indian Railways.

CG Power and Industrial Solutions has made a strategic entry into the semiconductor industry by building a semiconductor manufacturing facility.

The Outsourced Semiconductor Assembly and Test (OSAT) facility will be established in Sanand, Gujarat, by the company's subsidiary CG Semi. This facility is a component of a bigger investment worth Rs 76 bn.

Financial Highlights of CG Power and Industrial Solutions

Source: Equitymaster

Coming to financials of the company, in Q2 FY26 CG Power reported consolidated net sales of Rs 29,228 m against Rs 24,127 m in the corresponding period of last year. Net profits for Q2 FY26 was placed at Rs 2,844 m against Rs 2,196 m YoY.

The company's September quarter sales grew at 17% YoY. Order intake grew 32% YoY and profit after tax improved 38% YoY, making one of the strongest quarterly-performance in recent times.

Further the company in a presentation in November 2025, highlighted that orders remain robust with backlog strengthening to Rs 135.68 bn, providing the multi-quarter visibility.

The board recently approved a greenfield expansion for switchgear business for an investment of Rs 7.48 bn. This expansion has been proposed considering the expected increase in the demand of medium voltage and EHV circuit breakers, instrument transformers, GIS in the domestic market as well as cater to the export market.

To know more check CG Power fact sheet and latest quarterly results.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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