Shares of India’s leading semiconductor and electronics manufacturing firms surged on Wednesday following confirmation that the Expenditure Finance Committee (EFC) has cleared the budget proposal for the second phase of the India Semiconductor Mission (ISM 2.0).
The approval unlocks approximately ₹1.25 lakh crore (around $15 billion) in funding, marking a decisive step toward expanding the country’s domestic chip design and fabrication capabilities.
CG Power, Kaynes Technology, and Moschip Technologies were among the top gainers in the session, with the broader semiconductor-linked complex trading in positive territory.
The rally extended to other key players in the electronics manufacturing services (EMS) sector, including Dixon Technologies, Syrma SGS Technology, Cyient DLM, and Avalon Technologies, which also saw their shares rise on the news.
The EFC’s clearance is a critical procedural milestone for the ISM 2.0 proposal, which had previously received budgetary approval from the Ministry of Finance.
The substantial capital allocation aims to reduce India’s reliance on imported semiconductors and attract global foundries and design houses to set up operations within the country.