India’s semiconductor funding reaches ₹1.34 lakh crore, but capital flows into fewer players

India’s semiconductor ecosystem has raised approximately ₹1.34 lakh crore ($1.4 billion) in equity funding to date, with half of the capital coming in since 2025, according to a report by data intelligence platform Tracxn Technologies.

The funding, however, is becoming concentrated in fewer, larger deals. Of the 3,557 semiconductor companies tracked by Tracxn, 281 have raised funding, including 142 that have secured equity investments.

The two largest recent deals were ILJIN Electronics’ ₹1,897 crore ($198 million) private equity round and Tessolve Semiconductor’s ₹1,437 crore ($150 million) private equity raise, both in September 2025.


The report also points to a shift in the business models attracting capital. Electronic Manufacturing Services has raised ₹2,991 crore ($313 million) since 2025, including ₹853 crore ($89 million) in the trailing 12 months. Embedded Hardware follows with ₹496 crore ($51.9 million) raised since 2025, all of it in the trailing 12 months. Other leading segments include power management integrated circuits and fabless semiconductor manufacturing.

Bengaluru remains the country’s biggest semiconductor funding hub, accounting for 626 companies, or around 18% of the total tracked by Tracxn. The city also accounts for 40.1% of all equity funding raised by the sector to date. Noida, Gurugram, Kochi and Hyderabad are the other key centres.

The sector is also beginning to see exits. According to the report, India’s semiconductor ecosystem recorded 62 acquisitions as of 2026 year-to-date, compared with 42 IPOs. The largest acquisition on record is eInfochips’ ₹2,698 crore ($282 million) deal. Recent companies to go public include Tempsens Instruments in August 2026 and Merritronix in June 2026.

From funding to manufacturing

The growing investor interest comes as India attempts to build a semiconductor ecosystem beyond chip design and electronics assembly.

The government launched the India Semiconductor Mission (ISM) in 2021 with a ₹76,000 crore outlay, covering the semiconductor value chain from chip design and fabrication to packaging, testing, equipment, materials and talent.

Earlier this year, the government approved Semicon 2.0 with a proposed outlay of ₹1.27 lakh crore. The programme focuses on six areas: chip design, semiconductor equipment and materials, fabrication facilities, advanced packaging, research and development, and talent development.

Also Read: Government notifies Rs 1.27 lakh crore Semicon 2.0 scheme to boost chip ecosystem

The government has approved 12 semiconductor projects across six states, involving investment commitments of more than ₹1.64 lakh crore. These include silicon and compound semiconductor fabs, display fabrication and advanced packaging facilities. Three projects have already started commercial production.

The push builds on India’s expanding electronics manufacturing base. Electronics production rose from around ₹1.9 lakh crore in 2014-15 to ₹13.11 lakh crore in 2025-26, while electronics exports increased from approximately ₹38,000 crore to ₹4.24 lakh crore over the same period.

Under the Chips to Startup programme, Electronic Design Automation (EDA) tools have been deployed across 320 academic institutions, with more than 68,000 students trained. Twenty-four semiconductor design projects have been approved for financial support, while 105 startups and MSMEs have received EDA tool support under the Design Linked Incentive scheme.

By April 2026, 211 chips had been taped out by 75 institutions, with seven fabricated at different nodes, including nodes as advanced as 12 nanometres.

SEMICON India to showcase the ecosystem

These developments will be in focus at SEMICON India 2026, which Prime Minister Narendra Modi is scheduled to inaugurate at Yashobhoomi in Dwarka on September 17.

The three-day event will bring together global chipmakers, policymakers, investors and companies across the semiconductor value chain. Its theme—“Silicon to Systems: Building the Ecosystem”—reflects India’s attempt to move beyond individual projects and build a connected semiconductor industry.

The event is expected to feature more than 600 exhibitors, 300 international companies, six country pavilions, 12 state pavilions and over 150 speakers. It will also include a startup showcase, student hackathon and workforce development pavilion.

Also Read: Semicon 2.0: Accelerating semiconductor ecosystem development for global leadership in India

For India, SEMICON comes at a point when semiconductor ambitions are moving from policy announcements and funding commitments to manufacturing projects, chip-design activity and a growing network of companies. Tracxn’s funding data suggests that investors are beginning to recognise the opportunity, even as capital remains concentrated among a relatively small group of players.