Shares of India’s leading semiconductor and electronics manufacturing firms surged on Wednesday after the Expenditure Finance Committee (EFC) cleared the budget proposal for the second phase of the India Semiconductor Mission (ISM 2.0).
The approval unlocks approximately ₹1.27 lakh crore (around $15 billion) in funding, signaling a sustained government commitment to deepening the country's semiconductor capabilities and infrastructure.
The policy green light provided a sharp counter-narrative to the broader semiconductor sector, which has been under pressure.
Global chip stocks have recently slid into bear-market territory amid intensifying cost fears linked to new AI models and geopolitical tensions in the Middle East.
While global peers face selling pressure, Indian domestic players are benefiting from the clarity on state support for local manufacturing and packaging facilities.
The ISM 2.0 allocation marks a significant expansion of the initial mission, aiming to reduce import dependence and integrate India into the global supply chain.
For investors, the move transforms the sector from a speculative theme into a policy-backed growth story, with the government explicitly targeting long-term wealth creation through industrial capacity building.