Budget 2026 Expectations Updates: As India prepares for Union Budget 2026, semiconductor leaders are urging the government to shift the focus of the semiconductor mission from building assets to delivering outcomes that drive real adoption and scale.
Raja Manickam, Founder & CEO of iVP Semi, believes that the next phase of India’s semiconductor strategy must prioritise domestic consumption, preferential pricing and targeted funding to build a globally competitive chip ecosystem.
From Assets to Outcomes: The Next Phase of India’s Semiconductor Mission
India has made strong progress in attracting semiconductor manufacturing investments.
Now, Budget 2026 must ensure these assets translate into real market adoption and sustainable growth.
Key Budget Expectations
- Incentives for domestic consumption of Indian-designed chips
- Preferential pricing for Made-in-India semiconductors
- Demand-side support, not just supply-side subsidies
This will help Indian chip companies compete with global giants and scale faster.
Preferential Pricing to Boost Adoption of Indian Chips
High costs remain a barrier for Indian chip designers.
Budget 2026 Ask
- Government-backed incentives for preferential pricing
- Procurement preference for Indian-designed and manufactured chips
- Support for adoption across defence, EVs, telecom and power electronics
Lower prices will accelerate market adoption and build a strong local customer base.
Funding for Mature-Node Technologies Where India Can Scale
Instead of chasing only cutting-edge nodes, Raja Manickam recommends a strong push for mature-node technologies where India has a realistic and competitive advantage.
Priority Areas
- Power semiconductors
- Analogue and mixed-signal devices
- Automotive and industrial chips
- EV and renewable energy electronics
These segments offer faster scale, lower risk and high domestic demand.
Why This Matters for India
If Budget 2026 adopts these measures, India will achieve:
✔ Strong domestic semiconductor demand
✔ Faster scale-up of Indian chip companies
✔ Lower import dependence
✔ Stronger electronics manufacturing ecosystem
✔ Long-term technology sovereignty
Final Thoughts
Union Budget 2026 has the opportunity to turn India’s semiconductor ambition into a sustainable growth engine.
By prioritising preferential pricing, domestic consumption incentives and funding for mature-node technologies, India can build a competitive, outcome-driven semiconductor ecosystem.
Disclaimer: This article is for educational and informational purposes only.
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