Semiconductor funding in India hits $1.4 bn as investments surge

India’s semiconductor sector has attracted USD 1.4 billion in all-time equity funding across 281 funded companies, with nearly half of the amount, USD 701 million, raised since 2025, according to Tracxn data.

The findings come days before SEMICON India 2026, the country’s flagship semiconductor conference and exhibition, scheduled from September 17-19 at Yashobhoomi in Dwarka, New Delhi.

Prime Minister Narendra Modi will inaugurate the fifth edition of SEMICON India 2026 on September 17. The event will bring together global semiconductor industry leaders, government officials, state representatives and sector experts as India builds on the momentum of its growing semiconductor ecosystem.

India has 3,557 companies in the sector, of which 142 have raised equity funding, out of 281 funded companies. The sector recorded $228 million in funding in 2026 year-to-date (YTD), according to Tracxn.

Tessolve Semiconductor leads the sector in cumulative funding at $213 million till date. It is followed by ILJIN Electronics with $198 million and VVDN with $129 million.

Electronic Manufacturing Services has emerged as the leading business model by funding, securing $313 million since 2025.

Embedded Hardware ranked second with $51.9 million raised since 2025, entirely within the trailing 12 months. Power Management Integrated Circuits and Fabless Semiconductor Manufacturers were among the other leading business models by funding.

According to the report, funding in the sector increased from $49 million in 2021 to $473 million in 2025. The five-year funding compound annual growth rate (CAGR) stood at over 36 per cent.

Bengaluru remained the dominant hub, with 626 of the sector’s 3,557 companies, accounting for about 18 per cent of the total. The city also accounted for 40.1 per cent of all equity funding raised to date.

It was followed by Noida with a 16.4 per cent funding share, Gurugram at 10.7 per cent, Kochi at 8.8 per cent and Hyderabad at 6.2 per cent.

On exits, the report said acquisitions remained the primary route for Indian semiconductor companies. The sector recorded 62 acquisitions compared with 42 initial public offerings (IPOs).

Companies reached acquisition in an average of 11.8 years from their first funding round, compared with 16.5 years for companies that went public, the report said.

The largest exit on record was eInfochips’ $282 million acquisition, followed by Narayan Powertech at $262 million and SmartPlay Technologies at $180 million, according to the report.

Among recent listings, Tempsens Instruments went public in August 2026 with a market capitalisation of $263 million, while Merritronix listed in June 2026.