EV Sector Vs Semiconductor Sector – Which One Holds the Future?

The EV sector revolutionizes transportation, while the semiconductor sector powers innovation across industries. EVs rely on advanced semiconductors for efficiency and automation. The future hinges on semiconductors as they drive both EV advancements and broader technological progress across multiple domains.

EV Sector Overview

The EV sector is transforming global transportation by reducing carbon emissions and reliance on fossil fuels. Driven by advancements in battery technology, charging infrastructure and supportive policies, EV adoption is accelerating, with major automakers investing heavily in electric vehicle production and innovation.

Growth in the EV sector is fueled by increasing consumer demand, government incentives and stricter emission regulations. As battery costs decline and range improves, EVs are becoming more accessible. The sector also integrates renewable energy, smart grids and AI-driven solutions, shaping a sustainable mobility future.

Semiconductor Sector Overview

The semiconductor sector is the backbone of modern technology, powering everything from smartphones to AI and electric vehicles. With continuous advancements in chip design, fabrication and nanotechnology, the industry is driving innovation across computing, communications, healthcare and automation worldwide.

Rising demand for high-performance chips, AI accelerators and energy-efficient processors fuels sector growth. Governments and corporations are investing in semiconductor manufacturing to strengthen supply chains. As the industry shifts toward smaller nodes and quantum computing, it remains central to technological progress and digital transformation.

Best Stocks In The EV Sector

The table below shows the best stocks in the EV sector based on a 1Y return.

Name	Close Price (rs)	1Y Return (%)
Kaynes Technology India Ltd	4,649.75	73.11
Eicher Motors Ltd	5,247.90	30.73
Mahindra and Mahindra Ltd	2,596.55	29.65
Vedanta Ltd	401.45	29.52
Solar Industries India Ltd	10,987.10	26.8
Ashok Leyland Ltd	205.14	18.58
UNO Minda Ltd	830.75	13.91
NLC India Ltd	236.27	2.24
Samvardhana Motherson International Ltd	118.93	-0.56
Polycab India Ltd	5,040.75	-3.53

Top Stocks In The Semiconductor Sector

The table below shows the top stocks in the semiconductor sector based on a 1Y return.

Name	Close Price (rs)	1Y Return (%)
RIR Power Electronics Ltd	2,440.40	99.09
Dixon Technologies (India) Ltd	12,991.80	70.15
Moschip Technologies Ltd	146.31	41.21
ASM Technologies Ltd	1,275.30	34.38
Bharat Electronics Ltd	281.45	25.9
MIC Electronics Ltd	52.41	19.38
Solex Energy Ltd	728.1	13.26
SPEL Semiconductor Ltd	126.7	8.94
V Guard Industries Ltd	360.05	5.48
Surana Telecom and Power Ltd	18.55	3.92

Fundamental Analysis Of the EV Sector

Kaynes Technology India Ltd

Kaynes Technology India Ltd, incorporated in 2008, is a leading integrated electronics manufacturing company specializing in end-to-end and IoT-enabled solutions. It offers conceptual design, process engineering, and lifecycle support across automotive, aerospace, defense, medical, railways, IT, IoT, industrial, nuclear and outer-space sectors, ensuring advanced technology-driven manufacturing excellence.

Market Cap: ₹31,724.06 Crore

Close Price: ₹4,649.75

1Y Return: 73.11%

1M Return: 22.04%

6M Return: -7.9%

5Y average net Profit Margin: 5.79%

5Y CAGR: NA

Dividend Yield: NA

Sector: Electrical Components & Equipments

Eicher Motors Ltd

Established in 1948, Eicher Motors Ltd is a key player in India’s commercial vehicle segment. Through its joint venture, EV Commercial Vehicles, the company is developing electric trucks and buses to accelerate India’s EV transition. It focuses on efficient, eco-friendly mobility solutions for urban and intercity transportation.

Market Cap: ₹1,47,476.97 Crore

Close Price: ₹5,247.90

1Y Return: 30.73%

1M Return: 10.41%

6M Return: 11.5%

5Y average net Profit Margin: 18.02%

5Y CAGR: 32.85%

Dividend Yield: 0.95%

Sector: Trucks & Buses

Mahindra and Mahindra Ltd

Mahindra & Mahindra Ltd, founded in 1945, is a leading diversified automobile company in India. It operates across two-wheelers, passenger and commercial vehicles, tractors and earthmovers, with business interests in finance, IT, defense, logistics, hospitality, energy, aerospace and industrial equipment.

Market Cap: ₹3,13,159.68 Crore

Close Price: ₹2,596.55

1Y Return: 29.65%

1M Return: 1.97%

6M Return: -13.95%

5Y average net Profit Margin: 5.11%

5Y CAGR: 56.04%

Dividend Yield: 0.75%

Sector: Four Wheelers

Vedanta Ltd

Founded in 1976, Vedanta Ltd is a diversified natural resources company. It is investing in the EV value chain by targeting lithium and other battery minerals crucial for electric vehicle manufacturing. Vedanta’s global mining operations position it as a vital supplier in the clean energy and EV ecosystem.

Market Cap: ₹1,71,669.38 Crore

Close Price: ₹401.45

1Y Return: 29.52%

1M Return: 9.66%

6M Return: -21.08%

5Y average net Profit Margin: 5.7%

5Y CAGR: 44.92%

Dividend Yield: 6.39%

Sector: Metals – Diversified

Solar Industries India Ltd

Incorporated in 1995, Solar Industries India Ltd is a leader in explosives and defense products. It plays an indirect but crucial role in the EV sector by supporting mineral exploration for lithium, graphite and rare earths—essential for EV battery production—through safe, efficient mining support and technologies.

Market Cap: ₹1,02,195.85 Crore

Close Price: ₹10,987.10

1Y Return: 26.8%

1M Return: 27.53%

6M Return: 0.34%

5Y average net Profit Margin: 11.66%

5Y CAGR: 65.37%

Dividend Yield: 0.08%

Sector: Commodity Chemicals

Ashok Leyland Ltd

Established in 1948, Ashok Leyland Ltd is one of India’s largest commercial vehicle manufacturers. Its EV initiative, Switch Mobility, designs and manufactures electric buses and light commercial vehicles. The company is focused on zero-emission, sustainable mobility solutions tailored for public transport and last-mile delivery across global markets.

Market Cap: ₹61,649.45 Crore

Close Price: ₹205.14

1Y Return: 18.58%

1M Return: 1.91%

6M Return: -8.98%

5Y average net Profit Margin: 1.51%

5Y CAGR: 39.99%

Dividend Yield: 2.36%

Sector: Trucks & Buses

UNO Minda Ltd

Uno Minda Ltd, incorporated in 1958, is a leading manufacturer and supplier of automotive solutions. It produces 25+ components, including switches, lights, alloy wheels and seats, catering to passenger cars, commercial vehicles and electric/hybrid markets for Original Equipment Manufacturers (OEMs).

Market Cap: ₹49,590.53 Crore

Close Price: ₹830.75

1Y Return: 13.91%

1M Return: 6.37%

6M Return: -20.2%

5Y average net Profit Margin: 4.37%

5Y CAGR: 49.06%

Dividend Yield: 0.23%

Sector: Auto Parts

NLC India Ltd

NLC India Ltd, founded in 1956, is a government-owned mining and power generation company. While rooted in lignite mining, it is pivoting toward renewable energy. With investments in solar and wind power, NLC supports a clean electricity supply for EV charging networks and sustainable infrastructure development.

Market Cap: ₹34,503.68 Crore

Close Price: ₹236.27

1Y Return: 2.24%

1M Return: 23.82%

6M Return: -14.5%

5Y average net Profit Margin: 10.1%

5Y CAGR: 40.21%

Dividend Yield: 1.21%

Sector: Metals – Diversified

Samvardhana Motherson International Ltd

Samvardhana Motherson International Ltd is a leading automotive components manufacturer, supplying to original equipment manufacturers worldwide. It is among the largest global producers of exterior rear-view mirrors and a key player in polymer-based interior and exterior modules and wiring harnesses.

Market Cap: ₹90,725.99 Crore

Close Price: ₹118.93

1Y Return: -0.56%

1M Return: 9.94%

6M Return: -40.81%

5Y average net Profit Margin: 1.94%

5Y CAGR: 26.68%

Dividend Yield: 0.6%

Sector: Auto Parts

Polycab India Ltd

Established in 1996, Polycab India Ltd is India’s largest manufacturer of wires and cables. It plays a critical role in EV infrastructure by supplying specialized cables for EV charging stations and grid systems. Polycab’s energy-efficient products ensure safe, scalable electrification essential to India’s growing EV ecosystem.

Market Cap: ₹78,277.88 Crore

Close Price: ₹5,040.75

1Y Return: -3.53%

1M Return: 7.74%

6M Return: -29.84%

5Y average net Profit Margin: 8.88%

5Y CAGR: 46.92%

Dividend Yield: 0.58%

Sector: Electrical Components & Equipments

Fundamental Analysis Of Semiconductor Sector

RIR Power Electronics Ltd

RIR Power Electronics Ltd is engaged in manufacturing traditional semiconductor devices, including bridges, power modules, diodes, rectifiers, and thyristors. The company supports power electronics applications across industries with reliable, high-performance components and maintains a strong presence in the semiconductor sector.

Market Cap: ₹1,872.70 Crore

Close Price: ₹2,440.40

1Y Return: 99.09%

1M Return: 36.85%

6M Return: -38.41%

5Y average net Profit Margin: NA

5Y CAGR: 139.45%

Dividend Yield: 0.07%

Sector: Electronic Equipments

Dixon Technologies (India) Ltd

Dixon Technologies (India) Ltd, established in 1993, is a leading Electronic Manufacturing Services (EMS) provider. It operates across consumer electronics, lighting, home appliances, CCTVs and mobile phones. The company also manufactures security surveillance equipment, wearables, audibles and AC-PCBs, recently expanding into wireless audio solutions through a JV.

Market Cap: ₹78,258.30 Crore

Close Price: ₹12,991.80

1Y Return: 70.15%

1M Return: -9.88%

6M Return: -10.52%

5Y average net Profit Margin: 2.23%

5Y CAGR: 76.72%

Dividend Yield: 0.04%

Sector: Home Electronics & Appliances

Moschip Technologies Ltd

Moschip Technologies Ltd is a semiconductor and system design company specializing in Turnkey ASICs, Mixed Signal IP, and IoT solutions. It serves diverse sectors including aerospace, defence, automotive, medical, consumer electronics, and telecommunications with advanced semiconductor and product engineering services.

Market Cap: ₹3,690.68 Crore

Close Price: ₹146.31

1Y Return: 41.21%

1M Return: -18.56%

6M Return: -36.55%

5Y average net Profit Margin: -8.7%

5Y CAGR: 80.34%

Dividend Yield: NA

Sector: Software Services

ASM Technologies Ltd

ASM Technologies Ltd is engaged in semiconductor and system design, focusing on Engineering Services and Product R&D. With offshore centers in India and abroad, it has a global presence across the USA, UK, Singapore, Canada, Mexico, and Japan.

Market Cap: ₹1,501.56 Crore

Close Price: ₹1,275.30

1Y Return: 34.38%

1M Return: -6.64%

6M Return: -11.94%

5Y average net Profit Margin: 3.37%

5Y CAGR: 110.99%

Dividend Yield: 0.08%

Sector: IT Services & Consulting

Bharat Electronics Ltd

Bharat Electronics Ltd, incorporated in 1954, is a leading provider of electronic equipment and systems for the defense sector, contributing 81% of its revenue. It specializes in radar, weapon systems, communication and cyber security, with a growing presence in civilian markets.

Market Cap: ₹2,05,733.73 Crore

Close Price: ₹281.45

1Y Return: 25.9%

1M Return: -3.23%

6M Return: 0.43%

5Y average net Profit Margin: 15.94%

5Y CAGR: 66.27%

Dividend Yield: 0.78%

Sector: Electronic Equipments

MIC Electronics Ltd

MIC Electronics Ltd is a global leader in designing and manufacturing LED video displays, electronic and telecommunication equipment, and telecom software. Established in 1988, it holds notable achievements in true color display technology and solar-powered lighting solutions.

Market Cap: ₹1,263.14 Crore

Close Price: ₹52.41

1Y Return: 19.38%

1M Return: -18.03%

6M Return: -46.06%

5Y average net Profit Margin: -171.27%

5Y CAGR: NA

Dividend Yield: NA

Sector: Electrical Components & Equipments

Solex Energy Ltd

Solex Energy Ltd, incorporated in 1995, manufactures solar photovoltaic cells and modules. It offers EPC services and turnkey solar solutions across residential, commercial, industrial, and utility sectors. The company also engages in OEM and ODM partnerships with Indian and global brands.

Market Cap: ₹786.53 Crore

Close Price: ₹728.10

1Y Return: 13.26%

1M Return: -15.13%

6M Return: -53.89%

5Y average net Profit Margin: 2.14%

5Y CAGR: 115.46%

Dividend Yield: 0.06%

Sector: Industrial Machinery

SPEL Semiconductor Ltd

SPEL Semiconductor Ltd, incorporated in 1984, provides wafer sort, assembly, testing, and drop-shipment services for IC chips. The company supports global semiconductor supply chains by offering high-quality backend services in integrated circuit packaging and testing.

Market Cap: ₹584.31 Crore

Close Price: ₹126.70

1Y Return: 8.94%

1M Return: -19.73%

6M Return: -32.66%

5Y average net Profit Margin: -50.9%

5Y CAGR: 105.59%

Dividend Yield: NA

Sector: Electronic Equipments

V Guard Industries Ltd

V-Guard Industries Ltd, founded in 1977, is a leading Indian manufacturer of electronics, electricals, and consumer durables. Known for voltage stabilizers, it now offers a wide range of innovative products nationwide, focused on enriching lives and powering a stronger future.

Market Cap: ₹15,690.22 Crore

Close Price: ₹360.05

1Y Return: 5.48%

1M Return: 4.6%

6M Return: -18.7%

5Y average net Profit Margin: 6.21%

5Y CAGR: 17.39%

Dividend Yield: 0.39%

Sector: Electrical Components & Equipments

Surana Telecom and Power Ltd

Surana Telecom and Power Ltd, incorporated in 1984, is engaged in manufacturing and trading of solar-related products and semiconductors. The company is also involved in solar and wind power generation, contributing to India’s growing renewable energy sector.

Market Cap: ₹251.83 Crore

Close Price: ₹18.55

1Y Return: 3.92%

1M Return: -15.82%

6M Return: -16.37%

5Y average net Profit Margin: 18.21%

5Y CAGR: 46.49%

Dividend Yield: NA

Sector: Cables

Electric Vehicle Sector Performance & Growth

The below table shows the EV sector performance & growth based on a 5-year net profit margin.

Name	Close Price (rs)	5Y Avg Net Profit Margin (%)
Sona BLW Precision Forgings Ltd	501.95	17.9
Bajaj Auto Limited	8,125.55	16.52
Exide Industries Ltd	366	10.02
Hero MotoCorp Ltd	3,626.35	9.31
Sundram Fasteners Ltd	950.75	9.09
Polycab India Ltd	5,025.45	8.88
Bosch Ltd	28,276.80	8.76
Amara Raja Energy & Mobility Ltd	1,069.75	7.85
Havells India Ltd	1,483.20	7.79
Asahi India Glass Ltd	634.6	7.69

Semiconductor Sector Performance & Growth

The below table shows the Semiconductor sector’s performance & growth based on a 5-year net profit margin.

Name	Close Price (rs)	5Y Avg Net Profit Margin (%)
Tata Elxsi Ltd	4,869.40	20.39
Tata Consultancy Services Ltd	3,292.95	19.22
Surana Telecom and Power Ltd	18.55	18.21
Infosys Ltd	1,428.80	17.42
Bharat Electronics Ltd	281.45	15.94
HCL Technologies Ltd	1,403.35	14.85
L&T Technology Services Ltd	4,102.15	13.36
Havells India Ltd	1,463.15	7.79
V Guard Industries Ltd	360.05	6.21
ASM Technologies Ltd	1,275.30	3.37

Government Policies & Incentives For The Electric Vehicle and Semiconductor Sector

Governments worldwide are promoting the electric vehicle (EV) sector through subsidies, tax incentives and infrastructure investments. Policies like FAME in India and the Inflation Reduction Act in the U.S. support EV adoption, charging networks and battery manufacturing to accelerate the transition to clean mobility.

The semiconductor sector benefits from initiatives like India’s PLI scheme and the U.S. CHIPS Act, which are aimed at boosting domestic chip manufacturing. Incentives for R&D, fab construction and supply chain localization ensure technological self-reliance, reducing dependence on global semiconductor imports and strengthening national security.

Challenges Faced By the EV and Semiconductor Sector

The main challenges for the EV and semiconductor sectors include supply chain disruptions, high production costs, raw material shortages and infrastructure limitations. Both industries require significant investment in research, development and manufacturing to ensure sustainable growth and meet rising global demand.

• Supply Chain Disruptions – Semiconductor shortages impact EV production, while geopolitical tensions and raw material dependencies create uncertainties in both sectors, affecting cost and availability.
  
• High Production Costs – Advanced semiconductors and EV batteries require expensive R&D and manufacturing facilities, making cost reduction a key challenge for mass adoption.
  
• Raw Material Shortages – Critical minerals like lithium, cobalt and rare earth elements face supply constraints, affecting EV battery production and semiconductor chip manufacturing.
  
• Infrastructure Limitations – Inadequate EV charging networks and semiconductor fabrication facilities slow down adoption and production scalability, requiring extensive investments in capacity expansion.

Future Outlook Of EV and Semiconductor Sector

The EV sector is poised for rapid growth, driven by technological advancements, declining battery costs and supportive government policies. Increased charging infrastructure and innovations in energy storage will accelerate global EV adoption, reducing carbon emissions and transforming the transportation industry.

The semiconductor sector will see sustained demand fueled by AI, 5G and IoT expansion. Governments are investing in local manufacturing to reduce supply chain risks. Advanced chip designs and emerging technologies like quantum computing will shape the future, enhancing global digital transformation.

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Difference Between Semiconductor Sector And EV Sector – Conclusion

• The EV sector is revolutionizing transportation with sustainable mobility solutions. Increasing consumer adoption, battery innovations and government incentives are driving its rapid growth, reducing carbon emissions and enhancing energy efficiency worldwide.
• The semiconductor sector powers modern technology, enabling advancements in computing, AI and automation. It plays a crucial role in EV development, supporting battery management systems, power electronics and autonomous vehicle capabilities.
• Governments worldwide offer subsidies, tax benefits and funding for the EV and semiconductor sectors. Policies focus on local manufacturing, supply chain resilience and infrastructure expansion to accelerate technological advancements and global competitiveness.
• The EV and semiconductor sectors face supply chain disruptions, raw material shortages, high production costs and infrastructure limitations. Addressing these issues requires strategic investments, technological innovation and policy support for sustainable industry growth.
• The EV and semiconductor sectors are poised for exponential growth, driven by innovation and policy support. Advancements in battery technology, AI-driven chips and sustainable manufacturing will shape their future, ensuring efficiency and widespread adoption.
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Electric Vehicle Sector Vs Semiconductor Sector – FAQs

Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.