India’s Rs 1.27 lakh cr chip push needs more than fabs. 2 stocks supplying the missing pieces

India's semiconductor ambitions are moving beyond chip fabrication. The government's ₹76, 000 crore India Semiconductor Mission (ISM 1.0) has already laid the foundation for building a domestic semiconductor ecosystem.

Key points

• The ₹1.27 lakh crore ISM 2.0 has focused on chip design, advanced packaging, semiconductor equipment, materials, chemicals and other essential inputs.
• A number of materials and precision-engineered components employed in electronics and semiconductor manufacturing are still sourced from overseas.
• As semiconductor and electronics manufacturing capacity expands in India, the opportunity is shifting towards firms that can supply these critical components locally.
• Ratnaveer Precision Engineering (RPEL) manufactures stainless steel engineering products.
• Two engineering firms are positioning themselves in these emerging segments.

Meanwhile, the ₹1.27 lakh crore ISM 2.0 has focused on chip design, advanced packaging, semiconductor equipment, materials, chemicals and other essential inputs. This matters since India's dependence on imports extends well beyond semiconductors themselves.

For context, a number of materials and precision-engineered components employed in electronics and semiconductor manufacturing are still sourced from overseas. For instance, more than 90% of India's estimated ₹5, 000 crore copper-clad laminate demand is at present met through imports. The Broader Ecosystem: Beyond Chip Fabrication.

As semiconductor and electronics manufacturing capacity expands in India, the opportunity is shifting towards firms that can supply these critical components locally. Copper-clad laminates form the base material for printed circuit boards. In contrast, precision-engineered components are applied throughout semiconductor equipment and electronic devices.

Two engineering firms are positioning themselves in these emerging segments. One is building a copper-clad laminate facility aimed at import substitution. The other is expanding its precision manufacturing capabilities throughout electronics and semiconductor applications. Let's take a look. #1 Ratnaveer Precision: Targeting a ₹5, 000 Crore Base Material Gap.

Ratnaveer Precision Engineering (RPEL) manufactures stainless steel engineering products. RPEL is India's largest exporter of stainless steel washers, offering over 3, 300 washer SKU variants and producing more than 180 crore units annually. Its fastener lineup includes nuts, bolts, and specialised solar mounting hooks.

For now, india's Rs 1.27 lakh cr chip push needs more than fabs. 2 remains the part of the story worth watching, and further updates are likely as more details are confirmed.