Synopsis: India’s Rs. 1.25 lakh crore ISM 2.0 accelerates semiconductor growth by strengthening the entire value chain. It focuses on expanding chip manufacturing, design capabilities, materials, equipment, and supply chains to reduce import dependence and build a self-reliant ecosystem.
India is planning a major boost to its semiconductor industry through India Semiconductor Mission (ISM) 2.0, which has reportedly received approval from the Expenditure Finance Committee for a proposed outlay of about Rs. 1.25 lakh crore. This is a big jump compared to the earlier Rs. 76,000 crore phase, showing that the government wants to invest more aggressively in building chip manufacturing in the country.
The goal of ISM 2.0 is to make India more self-reliant in semiconductors by supporting everything needed in the ecosystem like chip factories, design companies, manufacturing equipment, special materials, and supply chains. In simple terms, it aims to reduce India’s dependence on imported chips and help the country become a global hub for making and designing semiconductors.
IZMO Ltd
Izmomicro, a specialised division of Bengaluru-based izmo Ltd has developed a breakthrough high-density silicon photonics packaging platform. This innovation successfully supports a 32-channel fiber input and output with an industry-leading insertion loss of less than 2 dB, alongside high-speed performance reaching up to 70 GHz.
By achieving nanometer-scale optical alignment and precision packaging, the company has solved a major industry bottleneck and positioned India as a leader in advanced semiconductor integration.
This technological milestone is critical for the scalability of AI clusters, hyperscale data centers, and next-generation 5G/6G networks, which are rapidly outgrowing the physical limitations of traditional copper interconnects.
Operating out of a state-of-the-art Class 1000 Cleanroom facility in Bengaluru, izmomicro is uniquely situated to capture a massive market opportunity, as the global silicon photonics market is projected to expand from $2.65 billion in 2025 to over $9 billion by 2030. With a market capitalisation of Rs. 1,436 cr, the shares of IZMO Ltd were trading at Rs. 960.30 per share, up from its previous close of Rs. 957.75 per share.
Aether Industries Ltd
Aether Industries Ltd is a specialty chemical manufacturer focused on high-purity intermediates used in pharmaceuticals, agrochemicals, and advanced materials. Its connection to the semiconductor theme lies in the critical role that ultra-pure chemicals and custom synthesis intermediates play in semiconductor fabrication processes, including wafer cleaning, etching, and photoresist production.
As global chip manufacturing expands, especially with India’s push to develop its semiconductor ecosystem, demand rises for precision chemicals that meet extremely strict purity standards. Companies like Aether, with capabilities in complex chemical synthesis and high-quality manufacturing, are indirectly positioned to benefit from this supply chain expansion.
With a market capitalisation of Rs. 17,715 cr, the shares of Aether Industries Ltd were trading at Rs. 1334.90 per share, up from its previous close of Rs. 1,327.50 per share.
Linde India Ltd
Linde provides ultra-pure bulk gases, electronics specialty gases, and advanced technical solutions to support global semiconductor manufacturers. Their offerings include on-site generation plants, such as the SPECTRA N nitrogen series and GENERATION F fluorine technology, which are designed to improve operational efficiency, accelerate production, and minimise environmental impact by replacing high-global-warming-potential gases.
To enable advanced chip miniaturisation and patterning, Linde supplies specialised Lithography Gases for deep ultraviolet (DUV) excimer laser mixtures alongside isotopically pure compounds. With a market capitalisation of Rs. 61,788 cr, the shares of Linde India Ltd were trading at Rs. 7245 per share, up from its previous close of Rs. 7,146.75 per share.
Fabtech Technologies Cleanrooms Ltd
Fabtech Technologies Cleanrooms Ltd provides modular cleanroom solutions designed for highly controlled environments used in semiconductor and electronics manufacturing. Cleanrooms are specialised sealed spaces where air quality, temperature, humidity, and airborne particles are tightly regulated to prevent contamination during chip production. Since semiconductor fabrication involves extremely small and sensitive components, even microscopic dust particles can cause defects, making cleanrooms a critical part of the manufacturing ecosystem.
Fabtech’s turnkey cleanroom systems are built to support semiconductor fabs, electronics assembly units, and advanced manufacturing facilities by ensuring ultra-low particle levels and stable operating conditions. These modular setups allow faster installation and scalability compared to traditional construction, helping India expand its semiconductor manufacturing capability while maintaining global-quality precision standards required for chips, medical devices, and high-end industrial electronics.
With a market capitalisation of Rs. 498 cr, the shares of Fabtech Technologies Cleanrooms Ltd were trading at Rs. 405 per share, down from its previous close of Rs. 405.05 per share.
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