Introduction
Shares of RIR Power Electronics Limited hit a 5% upper circuit after the government approved an ₹618 crore incentive for its silicon carbide (SiC) semiconductor manufacturing plant in Bhubaneswar.
This move strengthens India’s semiconductor industry and positions RIR Power Electronics as a key player in power electronics manufacturing.
Investors are optimistic about this expansion, expecting increased production capacity, lower costs, and long-term growth potential.
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Key Highlights
Stock hits upper circuit: RIR Power Electronics Limited shares surged 5% to ₹2,593.15 after the government approved an incentive of ₹618 crore.
New SiC semiconductor plant: The company will set up a silicon carbide (SiC) semiconductor manufacturing facility in Bhubaneswar.
Odisha Govt’s support: The incentive package is part of the Odisha Semiconductor Manufacturing and Fabless Policy 2023.
Expanding semiconductor sector: This investment strengthens India’s semiconductor industry and boosts RIR’s market position.
Revenue growth but lower profit: The company’s revenue grew by 13.31% YoY, while net profit declined by 23.12% in Q2 FY25.
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RIR Power Electronics Hits 5% Upper Circuit on Govt Incentive Approval
Shares of RIR Power Electronics Limited jumped 5% on Wednesday, reaching ₹2,593.15, after the company received government approval for an ₹618 crore incentive package.
The financial support will be used to establish a silicon carbide (SiC) semiconductor manufacturing plant in Bhubaneswar, Odisha.
With this announcement, the stock of the small-cap semiconductor firm hit its upper circuit limit, rising from its previous closing price of ₹2,469.70 per share.
The company currently has a market capitalization of ₹1,989.91 crores.
This strategic move is expected to strengthen India’s semiconductor ecosystem while reinforcing RIR Power Electronics’ position as a key player in power electronics and semiconductor manufacturing.
Govt Support for Semiconductor Industry
The Odisha government approved a customized incentive package under its Odisha Semiconductor Manufacturing and Fabless Policy 2023.
This policy aims to attract semiconductor investments and boost local manufacturing.
RIR Power Electronics will use the incentives to establish an advanced SiC semiconductor fabrication plant in Bhubaneswar.
The initiative aligns with India’s broader vision of self-reliance in semiconductor production and reducing dependence on imports.
According to industry experts, silicon carbide-based semiconductors are crucial for electric vehicles (EVs), renewable energy, and power grid applications due to their higher efficiency and durability compared to traditional silicon chips.
How the Incentive Benefits RIR Power Electronics
The approval of this ₹618 crore incentive is a game-changer for RIR Power Electronics. The company is expected to gain in several ways:
Increased production capacity – The new plant will allow the company to expand its semiconductor manufacturing capabilities.
Cost reduction – Government incentives will help reduce operational and manufacturing costs.
Technology upgrade – The investment will help RIR develop advanced semiconductor technologies.
Global competitiveness – The initiative enhances India’s presence in the global semiconductor supply chain.
Long-term growth – Expanding into SiC semiconductor production secures RIR’s future in an evolving market.
Company Overview: RIR Power Electronics Limited
Manufacturing Facilities
RIR Power Electronics operates a 40,000 sq. ft. manufacturing facility in Halol, Gujarat. The plant is equipped for die fabrication, soldering, encapsulation, and product testing.
The company has a technological partnership with International Rectifier (USA), improving its semiconductor production capabilities.
Product Portfolio
It specializes in power electronics and semiconductor devices, catering to industrial, railway, and energy sectors. Its product range includes:
- Rectifier Diodes and Thyristors
- Inverter-grade Thyristors
- Power Modules and IGBT Stacks
- Battery Chargers and High-Power Rectifiers
- Railway and Industrial Equipment
The company handles bulk orders and exports globally, including key markets in the USA and Europe.
Financial Performance: Q2 FY25 Results
RIR Power Electronics reported a 13.31% YoY revenue increase in Q2 FY25, reaching ₹18.82 crores, up from ₹16.61 crores in Q2 FY24. However, net profit fell 23.12%, declining from ₹1.99 crores to ₹1.53 crores.
Despite the lower profitability, analysts believe the company’s expansion into SiC semiconductor manufacturing will drive long-term revenue and margin growth.
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India’s Growing Semiconductor Sector
India has been aggressively investing in the semiconductor industry, aiming to become a global hub for chip manufacturing.
The government launched the Semicon India Program, offering ₹76,000 crores in financial support to boost local production.
Major semiconductor projects in India include:
- Vedanta-Foxconn JV – Setting up a $19.5 billion semiconductor plant in Gujarat.
- ISMC Digital Fab – Investing $3 billion in Karnataka for chip production.
- Tata Electronics – Expanding semiconductor packaging and manufacturing.
With rising demand for semiconductors in electric vehicles, 5G networks, and AI-powered technologies, India’s semiconductor industry is set for massive growth in the coming years.
Future Outlook for RIR Power Electronics
With the new SiC semiconductor plant in Bhubaneswar, RIR Power Electronics is set to expand its product range and enhance technological capabilities.
The government’s incentives will lower costs, improve profitability, and increase production efficiency.
Industry experts believe that SiC semiconductor demand will skyrocket in the next decade, particularly in:
- Electric vehicle (EV) charging infrastructure
- Renewable energy systems
- Industrial power electronics
- Smart grid applications
By entering the SiC semiconductor market, RIR Power Electronics can capitalize on India’s semiconductor boom and compete with global manufacturers.
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Conclusion
RIR Power Electronics Limited’s 5% stock surge reflects investor optimism about the ₹618 crore government incentive for its new SiC semiconductor manufacturing plant.
This initiative will help the company expand production, improve efficiency, and strengthen its position in India’s fast-growing semiconductor industry.
With India focusing on semiconductor self-reliance, RIR Power Electronics is well-positioned for long-term growth and global competitiveness.
Investors and analysts will closely watch how this strategic investment impacts the company’s financial performance and market share in the coming years.
