Union Budget 2026: FM Sitharaman launches India’s Semiconductor Mission 2.0

Finance Minister Nirmala Sitharaman on Sunday (February 1, 2026) announced the launch of India Semiconductor Mission (ISM) 2.0, aiming to boost the country’s semiconductor ecosystem.

“India’s semiconductor mission, 1.0 expanded India’s semiconductor sector capabilities. Building on this, we launch ISM 2.0 to produce equipment and materials, develop full-stack Indian IP, and strengthen supply chains. We will also focus on industry-led research and training centers to develop technology and a skilled workforce,” she said in the Parliament.

Ms. Sitharaman presented her ninth Budget in the Parliament today (February 1, 2026). This is the first time in the history of India that the Union Budget is being presented on a Sunday.

The new mission will focus on industry-led research and training centres to develop technology and a skilled workforce, she said.

As of August 2025, 10 semiconductor manufacturing and packaging projects have been approved in the country with a cumulative investment of around ₹1.6 lakh crore in six States.

Ms. Sitharaman also proposed a scheme for container manufacturing to create globally competitive ecosystem.

“The Electronics Components Manufacturing Scheme launched in April 2025 with an outlay of Rs 22,919 crores already has investment commitments at double the targets. We propose to increase the outlay to Rs 40,000 crore to capitalise on this momentum,” she said.

Three dedicated chemical parks will also be set up to enhance domestic production, reduce import dependency, she added.

The move comes amid a massive thrust by the government on increasing electronics manufacturing in the country.