Key Points
- India semiconductor sector raised $701 million since 2025, half of cumulative $1.4 billion total
- Bengaluru accounts for 40 per cent of all semiconductor equity funding in India
- Acquisitions remain primary exit route with 62 deals versus 42 IPOs
India‘s semiconductor sector has raised $1.4 billion in cumulative equity funding across 281 companies, with nearly half of this amount secured since 2025, according to data from research firm Tracxn cited by news agency PTI ahead of the country’s largest chip industry event.
The sector attracted $701 million in funding since 2025, including $228 million in 2026 so far. The figures emerge as the industry prepares for SEMICON India 2026, scheduled from 17 to 19 September at Yashobhoomi in Dwarka, New Delhi.
Prime Minister Narendra Modi will inaugurate the fifth edition of the event on 17 September, bringing together global semiconductor industry leaders, government officials and state representatives.
The funding surge reflects the government’s push to establish India as a semiconductor manufacturing hub through incentives under the India Semiconductor Mission. The programme offers subsidies of up to 50 per cent of project costs for approved fabrication units, assembly and testing facilities.
India currently has 3,557 companies operating in the semiconductor sector. Of these, 142 have raised equity funding, forming part of the 281 funded companies tracked by Tracxn.
Semiconductor funding
Tessolve Semiconductor has attracted the highest cumulative funding in the sector at $213 million. ILJIN Electronics follows at $198 million, with VVDN Technologies securing $129 million, according to the data.
Electronic Manufacturing Services emerged as the dominant business model since 2025, raising $313 million in funding. Embedded Hardware ranked second with $51.9 million, all of which was raised during the trailing 12 months. Power Management Integrated Circuits and Fabless Semiconductor Manufacturers were among other leading categories by funding volume.
Sector funding grew from $49 million in 2021 to $473 million in 2025. The five-year funding compound annual growth rate stands at more than 36 per cent, according to the Tracxn report.
The growth trajectory suggests investor confidence in India’s semiconductor ambitions despite the capital-intensive nature of chip manufacturing. Analysts have noted that while India lacks operational fabrication plants for advanced chips, the country has built strength in chip design, testing and packaging services.
Bengaluru dominance
Bengaluru remains the largest semiconductor hub in India, accounting for 626 of the country’s 3,557 companies, or approximately 18 per cent of the total. The city has also attracted 40.1 per cent of all equity funding raised by the sector.
Noida followed with a 16.4 per cent share of funding, ahead of Gurugram at 10.7 per cent, Kochi at 8.8 per cent and Hyderabad at 6.2 per cent. The concentration in Bengaluru reflects the city’s established technology ecosystem, proximity to engineering talent from institutions in Karnataka and the presence of global semiconductor design centres.
By the numbers
Key figures from this story- $1.4 billion
- Cumulative semiconductor sector equity funding
- $701 million
- Funding raised since 2025
- 36%
- Five-year funding CAGR
Acquisitions have remained the primary exit route for Indian semiconductor companies, with 62 acquisitions recorded compared with 42 initial public offerings, the report said. Companies reached acquisition in an average of 11.8 years from their first funding round, compared with 16.5 years for companies that pursued public listings.
The largest recorded exit was eInfochips’ $282 million acquisition. Narayan Powertech followed at $262 million, with SmartPlay Technologies at $180 million.
Among recent listings, Tempsens Instruments went public in August 2026 with a market capitalisation of $263 million. Merritronix listed in June 2026, according to the Tracxn report.
The data indicates both the opportunities and challenges facing India’s semiconductor ambitions. While funding has accelerated and the ecosystem has expanded, the sector remains dominated by services and design rather than manufacturing. The government has approved several fabrication projects under the semiconductor mission, though none have yet commenced commercial production.
Your Questions, Answered
How much funding has India's semiconductor sector raised?
India's semiconductor sector has raised $1.4 billion in cumulative equity funding across 281 companies, according to Tracxn data. Nearly half of this amount, $701 million, was raised since 2025.
Which Indian city leads in semiconductor funding?
Bengaluru leads India's semiconductor sector, hosting 626 of the country's 3,557 companies and accounting for 40.1 per cent of all equity funding raised by the sector.
Which company has received the most semiconductor funding in India?
Tessolve Semiconductor has attracted the highest cumulative funding in India's semiconductor sector at $213 million, followed by ILJIN Electronics at $198 million and VVDN at $129 million.
When is SEMICON India 2026 being held?
SEMICON India 2026 will be held from 17 to 19 September at Yashobhoomi in Dwarka, New Delhi. Prime Minister Narendra Modi will inaugurate the fifth edition of the event on 17 September.
