Published: 1 February 2026Business StandardScience & Technology
Budget 2026-27: India Semiconductor Mission 2.0 Launched; Electronics Components Scheme Raised to ₹40,000 Crore
The Union Budget 2026-27 launched India Semiconductor Mission (ISM) 2.0, building on the first phase to create an end-to-end semiconductor ecosystem. The Modified Programme for Development of Semiconductor and Display Manufacturing Ecosystem received ₹8,000 crore for FY 2026-27. Under the ATMP/OSAT scheme, 9 units are supported with an investment of ₹11,000 crore and 3,000 jobs.
The Electronics Components Manufacturing Scheme was enhanced from ₹22,919 crore to ₹40,000 crore. A Container Manufacturing Scheme of ₹10,000 crore and SME Growth Fund of ₹10,000 crore were also announced. The Micron Technology ATMP facility in Sanand, Gujarat — ₹22,516 crore investment — was highlighted as a milestone in India's semiconductor journey.
0Mains angle
Q: Evaluate the significance of India Semiconductor Mission 2.0 and related Budget 2026-27 announcements for building an end-to-end electronics manufacturing ecosystem.
Answer (50 words):
Budget 2026-27 launched ISM 2.0 with ₹8,000 crore for the Modified Semiconductor Programme and expanded the Electronics Components Manufacturing Scheme from ₹22,919 crore to ₹40,000 crore. Nine ATMP units worth ₹11,000 crore and Micron's ₹22,516 crore Sanand facility anchor self-reliant chip manufacturing capacity.
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Who chairs the AI Governance and Economic Group (AIGEG) constituted by MeitY in April 2026?
Explanation · Correct answer CIn April 2026, MeitY constituted the AI Governance and Economic Group (AIGEG) as India's central institutional mechanism for AI governance policy development and coordination. Per PIB, it is chaired by Union Minister for Electronics and IT Ashwini Vaishnaw; the Principal Scientific Adviser is a member.
Frequently asked questions
What did the Union Budget 2026-27 launch for India's semiconductor ecosystem?
The Union Budget 2026-27 launched India Semiconductor Mission (ISM) 2.0. It builds on the first phase to create an end-to-end semiconductor ecosystem.
What funding and support were announced for semiconductor and display manufacturing?
The Modified Programme for Development of Semiconductor and Display Manufacturing Ecosystem received ₹8,000 crore for FY 2026-27. Under the ATMP/OSAT scheme, 9 units are supported with an investment of ₹11,000 crore and 3,000 jobs.
How did the Electronics Components Manufacturing Scheme change, and what other schemes were announced?
The Electronics Components Manufacturing Scheme was enhanced from ₹22,919 crore to ₹40,000 crore. A Container Manufacturing Scheme of ₹10,000 crore and SME Growth Fund of ₹10,000 crore were also announced.
Why was the Micron Technology ATMP facility in Sanand highlighted?
The Micron Technology ATMP facility in Sanand, Gujarat, with ₹22,516 crore investment, was highlighted as a milestone in India's semiconductor journey.
