India’s semiconductor sector attracts $1.4 billion in funding across 281 companies
India's semiconductor sector has attracted $1.4 billion in equity funding across many companies. Nearly half of this investment occurred since 2025, showing rapid growth. The nation is preparing to host SEMICON India 2026, a major industry event. Bengaluru leads as the primary semiconductor hub, attracting substantial investment. Acquisitions remain the dominant exit strategy for companies in…
India's semiconductor sector has received a substantial $1.4 billion in equity funding, distributed across 281 companies, according to Tracxn data highlighted by PTI. Notably, $701 million of this funding was raised since 2025, including $228 million in 2026 alone. Prime Minister Narendra Modi is set to inaugurate the fifth SEMICON India event on September 17-19 at Yashobhoomi in Dwarka, New Delhi.
This event will gather industry leaders, government officials, state representatives, and sector experts from around the globe.
As of now, India boasts 3,557 semiconductor companies, out of which 281 have received equity funding. Among these funded companies, Tessolve Semiconductor leads with the highest cumulative funding at $213 million, followed by ILJIN Electronics with $198 million and VVDN with $129 million.
Electronic Manufacturing Services has been the primary business model, raising $313 million in funding. Embedded Hardware ranks second with $51.9 million in funding, all of which was raised within the last 12 months. Power Management Integrated Circuits and Fabless Semiconductor Manufacturers also rank among the leading business models by funding.
Funding for the sector has surged from $49 million in 2021 to $473 million in 2025, boasting a five-year compound annual growth rate of over 36%. Bengaluru continues to be the largest hub for semiconductor funding, accounting for 18% of India's 3,557 semiconductor companies and 40.1% of all equity funding. Noida follows with a 16.4% share of funding, while Gurugram, Kochi, and Hyderabad account for 10.7%, 8.8%, and 6.2% respectively.
Acquisitions have proven to be the main exit route for Indian semiconductor companies, with 62 acquisitions compared to 42 IPOs. Companies typically take an average of 11.8 years to exit through acquisitions, as opposed to 16.5 years for those that go public. The largest recorded exit was the $282 million acquisition of eInfochips, followed by $262 million for Narayan Powertech and $180 million for SmartPlay Technologies.
Among recent listings, Tempsens Instruments went public in August 2026 with a market capitalization of $263 million, while Merritronix listed in June 2026.
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