India’s semiconductor sector has drawn $1.4 billion in cumulative equity funding across 281 funded companies. This amount is almost half of the capital raised since 2025, according to Tracxn data.
The sector has raised $701 million since 2025, including $228 million as of the third quarter of 202. This progress marks a milestone as India prepares to host SEMICON India 2026 from 17th to 19th September 2026.
Funding Rises as Semiconductor Base Expands
India houses 3,557 semiconductor-related companies, of which 281 have secured funding & 142 have raised equity investments.
Annual funding rose from $49 million in 2021 to $473 million in 2025, a five-year compound annual growth rate (CAGR) of more than 36%.
Electronic Manufacturing Services (EMS) was the largest funded segment in 2025, attracting $313 million. Embedded hardware ranked second with $51.9 million, all raised in the past 12 months.
Power Management Integrated Circuits and fabless semiconductor manufacturers were among the other leading categories.
Tessolve Semiconductor leads cumulative funding with $213 million, followed by ILJIN Electronics at $198 million and VVDN at $129 million.
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Bengaluru Leads, Acquisitions Remain Key Exit Route
Bengaluru remains the largest hub for India’s semiconductor sector, with around 626 companies. It has also accounted for 40.1% of equity funding raised so far. Noida held a 16.4% share of funding, followed by Gurugram at 10.7%, Kochi at 8.8% and Hyderabad at 6.2%.
Acquisitions remain the preferred exit route, with 62 acquisitions compared with 42 IPOs. Companies took an average of 11.8 years from their first funding round to an acquisition, against 16.5 years for those that went public.
The largest recorded exits included eInfochips’ $282 million acquisition, Narayan Powertech at $262 million and SmartPlay Technologies at $180 million. Tempsens Instruments listed in August 2026 with a market capitalisation of $263 million, while Merritronix listed in June.
SEMICON India 2026, the fifth edition, will be held at Yashobhoomi in Dwarka, New Delhi and will be inaugurated by Prime Minister Narendra Modi on September 17. The event will bring together global semiconductor industry leaders, government officials, state representatives, and sector experts.
Samarjit Kaur is a journalist and communications professional covering technology & emerging digital trends. With a focus on clarity and context, she reports on developments shaping industries and governance. When not reporting, she chooses to plug-in and relax on her playlists and plan her next bucket-list trips!
