Budget 2026 puts semiconductors in focus with ₹40,000-cr Mission 2.0 push; which stocks to watch?
News by Aliceblue News Desk
02 Feb 2026
Introduction
Union Budget 2026 prioritizes semiconductors with a ₹40,000 crore mission to expand chip production, enhance research, develop skilled workforce, and strengthen domestic electronics manufacturing capacity.
Budget 2026 Boosts Semiconductor Push
Union Budget 2026 placed semiconductors at the centre of India’s manufacturing strategy as Finance Minister Nirmala Sitharaman announced India Semiconductor Mission 2.0 with an outlay of ₹40,000 crore to boost equipment manufacturing and research nationwide.
The finance minister said the government will promote industry-led research and training centres that will work with companies to develop new technologies and train engineers and technicians for the expanding electronics and semiconductor manufacturing ecosystem.
She highlighted strong investor interest in the electronics components manufacturing scheme launched in April 2025 with an outlay of ₹22,919 crore, noting that committed investments have already crossed twice the original targets set earlier officially.
To sustain this momentum, the government announced an increase in the scheme’s allocation to ₹40,000 crore, aligning it with the broader India Semiconductor Mission 2.0 objectives outlined in the Union Budget for long-term sector growth.
“India’s semiconductor mission 1.0 expanded India’s semiconductor sector capabilities. Building on this, we will launch ISM 2.0 to produce semiconductor equipment and materials, develop full-stack Indian IP, and strengthen supply chains,” she said.
The Economic Survey 2025-26 said India’s semiconductor and electronics manufacturing push reflects a focused long-term strategy, emphasising mission-driven and industry-linked research to channel resources into priority sectors of advanced production and complex manufacturing value chains.
As of January 2026, the government has approved 10 semiconductor projects involving ₹1.60 trillion investment under the ₹76,000 crore India Semiconductor Mission, aimed at building domestic capacity and reducing import dependence in critical chip segments.
Stocks to Watch
Semiconductor and EMS stocks likely in focus include:
Kaynes Technology
On February 2, 2026, Kaynes Technology India Ltd opened at ₹3,598.70, down 1.33% from its previous close of ₹3,558.65. The stock reached a high of ₹3,598.70 and a low of ₹3,410.00. By 10:48 AM, it traded at ₹3,410.00, a 4.18% decrease, with a market cap of ₹22,858.82 crore.
Syrma SGS
On February 2, 2026, Syrma SGS Technology Ltd opened at ₹775.85, up 0.91% from its previous close of ₹769.05. The stock reached a high of ₹802.00 (4.22%) and a low of ₹770.00. By 10:49 AM, it traded at ₹780.05, a 1.43% increase, with a market cap of ₹15,043.67 crore.
Dixon Technologies
On February 2, 2026, Dixon Technologies (India) Ltd opened at ₹10,299.50, up 1.11% from its previous close of ₹10,187.75. The stock reached a high of ₹10,528.05 (3.34%) and a low of ₹10,119.55. By 10:50 AM, it traded at ₹10,257.60, a 0.69% increase, with a market cap of ₹62,249.01 crore.
Amber Enterprises
On February 2, 2026, Amber Enterprises India Ltd opened at ₹6,046.35, up 1.00% from its previous close of ₹5,986.70. The stock reached a high of ₹6,046.35 and a low of ₹5,844.85. By 10:52 AM, it traded at ₹5,852.60, a 2.24% decrease, with a market cap of ₹20,584.79 crore.
PG Electroplast
On February 2, 2026, PG Electroplast Ltd opened at ₹540.85, down 0.97% from its previous close of ₹541.65. The stock reached a high of ₹548.45 (1.24%) and a low of ₹533.65. By 10:52 AM, it traded at ₹536.70, a 0.91% decrease, with a market cap of ₹15,313.05 crore.
CG Power
On February 2, 2026, CG Power and Industrial Solutions Ltd opened at ₹601.95, up 0.74% from its previous close of ₹597.45. The stock reached a high of ₹604.75 (1.22%) and a low of ₹590.45. By 10:52 AM, it traded at ₹592.75, a 0.79% decrease, with a market cap of ₹93,351.76 crore.
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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.
FAQs
Q: What is India Semiconductor Mission 2.0?
A: It is a government initiative with ₹40,000 crore outlay to boost semiconductor production, research, and skilled workforce development.
Q: How many semiconductor projects are approved under the mission?
A: As of January 2026, 10 semiconductor projects with total investment of ₹1.60 trillion are approved under the mission.
Q: Which areas will the mission focus on?
A: The mission focuses on semiconductor equipment manufacturing, research, workforce training, domestic chip capacity, and supply chain strengthening.
News Author
Aliceblue News Desk
