New Delhi, Sept. 18 -- India's semiconductor story is moving from policy to production, but the stock prices of the related companies have been moving in the opposite direction.

Semicon 2.0 was approved in July, with the government's commitment set at Rs.1.275 trillion, up from Rs.76,000 crore under the 2021 scheme. The market had enthusiastically priced in this opportunity: since Semicon 1.0, stocks like MosChip, SPEL Semiconductor and RIR Power Electronics had gained up to 400%. Kaynes had surged 850% since its 2022 listing. But over the past year, they have fallen as much as 71% - a sharp reality check after the initial hype.

That's because India's semiconductor strategic opportunity does not directly translate into semiconductor sto...