Dixon Technologies, CG Power: Semiconductor-linked stocks rally over 8% post India-US trade deal; check what SEMI India says

The India-US trade deal can be a major catalyst for India's electronics, semiconductor, and technology ecosystem, Ashok Chandak, President of SEMI India and IESA, said on Tuesday, adding it will accelerate semiconductor design and manufacturing, bolster value addition, and expand cooperation across the AI and data centre space.

The comment from the industry assumes significance as the US and India have reached a trade deal following months of negotiations.

Washington will reduce the reciprocal tariff on Indian goods to 18% from the current 25%, US President Trump said in a social media post on Monday following a phone conversation with Prime Minister Narendra Modi.

The prime minister said he was delighted that "Made in India products will now have a reduced tariff of 18%."

IESA's (India Electronics and Semiconductor Association) Chandak said the India-US trade deal can be a major catalyst for India's electronics, semiconductor, and technology ecosystem.

How are related stocks faring?

In India, pure-play semiconductor companies are still limited, but several listed stocks are directly or indirectly linked to the semiconductor ecosystem—design, manufacturing support, OSAT, equipment, and electronics that depend heavily on chips.

Stock performance

Dixon Technologies shares were trading 7.22% higher at ₹11,085 apiece on the NSE, while CG Power and Industrial Solutions was up nearly 9% at ₹661.60. Kaynes Technology India was up over 5% at ₹3,653.90, and Syrma SGS Technology was trading 7.77% higher at ₹829.15 on the NSE.

Amber Enterprises India shares were trading at ₹6,329 apiece on the NSE, up 5.50%.

Among IT companies that are closest to “true” semiconductor plays were also trading higher.

Tata Elxsi shares were up at ₹5,527, up 1.60%, while HCL Technologies was trading over 2% higher at ₹1,716.50 on the NSE.

What Chandak said

By improving market access, enabling smoother flow of capital equipment and advanced technologies, and, when complemented by the iCET and TRUST initiatives, strengthening trusted supply chains and deepening technology collaboration, the agreement significantly enhances India's attractiveness as a global manufacturing and innovation hub, Chandak said.

"It will accelerate semiconductor design and manufacturing, boost electronics value addition, and expand cooperation across AI, data centres, and advanced manufacturing – creating high-skill jobs and positioning India as a strategic and reliable partner in the global technology value chain," he added.

The vision of USD 500 billion in bilateral trade can have over USD 100 billion in trade for the electronics and semiconductor sector, according to him.