Budget 2026: Semiconductor allocation gets massive boost to ₹8,000cr
Business
India just gave its semiconductor industry a serious upgrade—increasing this year's budget to ₹8,000cr (from ₹4,300cr).
The move signals the government's big push to make India a major player in chip manufacturing and tech innovation.
Major allocations and fresh initiatives
Most of the cash is headed toward developing advanced chips—compound semiconductors, silicon photonics, sensors, and OSAT facilities now get ₹5,000cr. Funding for building new chip factories (fabs) has doubled to ₹2,000cr.
There's also a fresh initiative: India Semiconductor Mission 2.0 gets ₹1,000cr to drive things forward. Plus, there are big boosts for electronics components manufacturing and modernizing labs—even as some older incentive schemes see cuts.