India's semiconductor sector draws USD 1.4 bn funding, half of it since 2025

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

The findings come days ahead of SEMICON India 2026, the country's flagship semiconductor conference and exhibition, which will be held 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, a mega-event set to 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 is home to 3,557 companies in the sector, of which 142 have raised equity funding, out of 281 funded companies. The sector recorded USD 228 million in funding in 2026 year-to-date (YTD), according to Tracxn.

Tessolve Semiconductor leads the sector in cumulative funding at USD 213 million till date, followed by ILJIN Electronics (USD 198 million) and VVDN (USD 129 million).

Electronic Manufacturing Services has led the sector's funding, securing USD 313 million since 2025.

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

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

Bengaluru remained the dominant hub, home to 626 of the sector's 3,557 companies - about 18 per cent of the total - and accounting for 40.1 per cent of all equity funding raised to date. It was followed by Noida (16.4 per cent), Gurugram (10.7 per cent), Kochi (8.8 per cent) and Hyderabad (6.2 per cent) in terms of funding share.

On exits, the report said acquisitions remained the primary route for Indian semiconductor companies, with the sector recording 62 acquisitions compared with 42 initial public offerings (IPOs). Companies reached acquisition in an average of 11.8 years from their first funding round, against 16.5 years for companies that went public, the report said.

The largest exit on record was eInfochips' USD 282 million acquisition, followed by Narayan Powertech (USD 262 million) and SmartPlay Technologies (USD 180 million), as per the report.

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