India Inc wants Budget to go beyond chip fabs, push full semiconductor value chain

The Union Budget will be presented on February 1

As the government prepares to present the Union Budget on February 1, Indian industry is calling for a broader push for the semiconductor sector, going beyond the chip fabrication plants and addressing the entire value chain, according to the Moneycontrol Mood of India Inc Survey.

The survey shows that the strongest demand from corporate leaders is for a comprehensive, long-term policy framework that anchors both current and emerging semiconductor technologies in India.

About 64.4 percent of respondents said such a framework is critical.

Another 64.4 percent of respondents highlighted the need to promote research and development for domestic companies while supporting global R&D services.

Industry leaders believe R&D incentives will be key to reducing dependence on foreign intellectual property.

The survey further indicates strong backing for policies that treat the semiconductor ecosystem holistically. Around 62.2 per cent of respondents said the upcoming Budget should include all elements of the value chain — equipment, materials and chemicals — within the policy framework.

Another major priority flagged by industry is the creation of globally competitive manufacturing hubs.

About 53.3 per cent of respondents called for accelerating the development of semiconductor manufacturing clusters through master developers, aimed at building world-class facilities with shared infrastructure and utilities.

The government has already committed over  Rs 76,000 crore under the Semiconductor Mission and is preparing the second phase of the mission.

With industry seeking a second phase of reforms — one that addresses the full spectrum of the semiconductor ecosystem — how the government drafts ISM 2.0 will be closely tracked by industry and others.