3 Undervalued Semiconductor Stocks to Add to Your Watchlist

December 12, 2025

When discussing Asia’s semiconductor landscape, the spotlight typically falls on Taiwan’s advanced foundries, South Korea’s memory chip powerhouses, Japan’s comprehensive capabilities and China’s growing ambitions. India, meanwhile, is often overlooked.

But that could change soon. Backed by a vast talent pool, strong technical expertise and multi-billion dollar government incentives, India is steadily shaping a dynamic semiconductor ecosystem.

As a result, semiconductors have emerged as a key investment theme on Dalal Street. While many stocks in this segment are already valued at premium, there are still some value points.

For investors looking to capitalize on this opportunity, this editorial highlights three undervalued stocks in India that, while not pure semiconductor companies, are an important part of the broader semiconductor ecosystem.

#1 Mindteck

First on the list is Mindteck.

Mindteck is a leading provider of software and hardware solutions for the semiconductor industry.

With more than two decades of experience, the company has supported semiconductor equipment manufacturers, subsystem suppliers and fabs by improving equipment software functions, improving performance and increasing overall productivity.

The semiconductor engineering and equipment life cycle services cover the entire value chain: new product development, life support testing, support and performance improvement.

Here’s a snapshot of Mindteck’s core capabilities in semiconductor software and automation…

Mindteck’s strengths include deep domain knowledge of both front-end and back-end equipment, strong expertise in software subsystems and a range of solution accelerators.

The company’s semiconductor software offerings include:

• Equipment software
• FAB/MES software
• Advanced process solutions and IT services

As of December 11, 2025, the stock is trading at a price-to-earnings ratio of 20.2, compared to an industry price-to-earnings ratio of 26.1.

Source: EquitymasterOver the past three years, revenue has grown at a CAGR of around 12.4%, while profits have increased from Rs 208 million in FY23 to Rs 287 million in FY25.

The three-year average ROE and ROCE are 11.5% and 14.7% respectively.

Going forward, the company’s focus on point-of-care devices, asset tracking and real-time data solutions positions it well to capitalize on rising demand in healthcare, logistics and smart infrastructure.

For more details, see Mindteck India’s company fact sheet and quarterly results.

#2 Wipro

Next on the list is Wipro.

Wipro has a strong position in semiconductors, backed by extensive technical expertise and domain knowledge.

The engineeringNXT team has delivered more than 150 tapeouts over the past five years, offering services such as SoC development with advanced nodes, silicon validation, reference board design, software driver and firmware development, and analog mixed-signal solutions.

The company also operates a SerDes center of excellence with several successful designs, including the 28G/16FFC SerDes.

These capabilities enable customers to accelerate development and scale efficiently across semiconductor programs.

The stock trades at a price-to-earnings ratio of 19.9 as of December 11, 2025, compared to an industry price-to-earnings ratio of 26.1.

Source: EquitymasterOver the past three years, sales have grown at a CAGR of approximately 4%, while profits have grown at a CAGR of 2.6%.

The three-year average ROE and ROCE are 15.3% and 20.1% respectively.

For more details, see Wipro’s corporate fact sheet and quarterly results.

#3 Vedanta

The last on the list is Vedanta.

Vedanta is involved in the semiconductor industry through its wholly owned subsidiary, Vedanta Semiconductors Private Limited (VSPL).

VSPL plans to set up a 40nm CMOS-based semiconductor fab with a capacity of 40,000 wafers per month and a wafer size of 300mm. In phase 2, after achieving 40nm mass production, the company will move to the improved technology for the production of 28nm size chips.

These semiconductor chips will be suitable for applications in mobile phones, consumer electronics, automotive and networking equipment.

The stock trades at a price-to-earnings ratio of 11.6 as of December 11, 2025, compared to an industry price-to-earnings ratio of 46.9.

Source: EquitymasterOver the past three years, revenue has grown at a CAGR of around 4.8%, while profits have grown from Rs 145,060 mln in FY23 to Rs 205,350 mln in FY25.

The three-year average ROE and ROCE are 37.2% and 36% respectively.

Going forward, Vedanta has proposed a demerger. For aluminium, zinc, energy and metals (including base metals and ferroalloys), there are plans to split the business into separate entities to improve focus, attract segment-specific investors and increase valuations through specialist management.

Each shareholder of Vedanta Ltd will receive one share in each of the newly demerged companies upon completion of the process, in accordance with the demerger plan.

Aluminum, zinc, copper, iron ore and other metals that Vedanta produces through its subsidiaries are used in the power sector, infrastructure, construction, electric vehicles and renewable energy equipment.

For more details, see Vedanta’s corporate fact sheet and quarterly results.

Should You Consider Investing in Undervalued Semiconductor Stocks?

Investing in undervalued semiconductor stocks may seem attractive to investors looking for early exposure to a sector that is gradually strengthening in India. But this must be approached with a balanced and long-term view as the ecosystem is still developing.

Looking ahead, the India Electronics and Semiconductor Association (IESA) expects the country’s semiconductor market to grow from Rs 4,501.6 billion (US$52 billion) in 2024 to Rs 8,951.3 billion (US$103.4 billion) in 2030.

This expansion will be driven by mobile phones, IT, telecommunications, consumer electronics, automotive, aerospace and defense.

Mobile phones, IT and industrial applications currently represent almost 70% of the sector’s turnover and are likely to remain the main contributors to demand in the coming years.

However, the industry is still in its early stages domestically, meaning progress may be volatile compared to mature global semiconductor markets.

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

Disclaimer: This article is for informational purposes only. It is not a stock recommendation and should not be treated as such. Read more about our referral services here…