CG Power, other semiconductor stocks jump up to 6% after FM Sitharaman unveils India Semiconductor Mission 2.0

Semiconductor stocks jump up to 6% after FM Sitharaman unveils India Semiconductor Mission 2.0

• Semiconductor stocks surged after India Semiconductor Mission 2.0 was announced
• Mission 2.0 aims to boost equipment, materials, IP design, and supply chains
• Experts say the budget supports tech growth, R&D, and global competitiveness

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The shares of semiconductor companies jumped in trade on February 1 as Finance Minister Nirmala Sitharaman unveiled the second version of India Semiconductor Mission.

While presenting Union Budget 2026, Finance Minister Nirmala Sitharaman said that the new version of the scheme aims to produce equipment and materials, design fullstack Indian IP, and fortify supply chains.

“We will also focus on industry-led research and training centres to develop technology and skilled workforce,” she added.

Semiconductor stocks:

CG Power and Industrial Solutions shares surged 6 percent to trade at Rs 620 apiece, while MIC Electronics shares gained nearly 5 percent to their day’s high, before paring gains.

Kaynes Technology India shares also gained more than 5 percent.

What experts say:

“Union Budget 2026 signals a strong strategic thrust towards technology-led growth and sustainable energy transformation. The launch of India Semiconductor Mission 2.0 with significant support for industry-led R&D and manufacturing is a landmark step in advancing India’s semiconductor ecosystem and strengthening our global competitiveness,” said Pawan Kumar Garg, Chairman & Joint Managing Director, Fujiyama Power Systems. “We are optimistic about contributing to this dual momentum in semiconductors and the clean energy transition,” he added.

"This budget represents a significant change, including strategic investments in semiconductors, precision engineering, and applied AI—the cornerstones of intelligent production, said, Amarnath Jan, CEO of Keystone Robotix.

Structural initiatives like India Semiconductor Mission 2.0, high-speed rail expansions, and targeted aid for manufacturing and emerging sectors promise greater competitiveness, job creation and economic resilience, said Vinod Francis, Chief Financial Officer, South Indian Bank.

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