India’s Rs 1.27 lakh cr chip push needs more than fabs. 2 stocks supplying the missing pieces

India’s semiconductor ambitions are moving beyond chip fabrication. The government’s ₹76,000 crore India Semiconductor Mission (ISM 1.0) has already laid the foundation for building a domestic semiconductor ecosystem. Meanwhile, the ₹1.27 lakh crore ISM 2.0 has focused on chip design, advanced packaging, semiconductor equipment, materials, chemicals and other essential inputs. This matters because India’s dependence on imports extends well beyond semiconductors themselves. Several materials and precision-engineered components used in electronics and semiconductor manufacturing are still sourced from overseas. For instance, more than 90% of India’s estimated ₹5,000 crore copper-clad laminate demand is currently met through imports. The Broader Ecosystem: Beyond Chip Fabrication As semiconductor and electronics manufacturing capacity expands in India, the opportunity is shifting towards companies that can supply these critical components locally. Copper-clad laminates form the base material for printed circuit boards. In contrast, precision-engineered components are used across semiconductor equipment and electronic devices.