India Semiconductor Sector: India’s semiconductor sector attracts $1.4 billion in funding across 281 companies
India’s semiconductor sector has attracted $1.4 billion in cumulative equity funding across 281 funded companies, with nearly half of the amount raised since 2025, according to Tracxn data cited by PTI.The sector raised $701 million since 2025, including $228 million in 2026 so far, as India prepares to host the fifth edition of SEMICON India from September 17-19 at Yashobhoomi in Dwarka, New Delhi.Prime Minister Narendra Modi will inaugurate SEMICON India 2026 on September 17. The event will bring together global semiconductor industry leaders, government officials, state representatives and sector experts.India has 3,557 companies in the semiconductor sector, of which 142 have raised equity funding, out of 281 funded companies.
Tessolve leads cumulative funding
Tessolve Semiconductor has attracted the highest cumulative funding in the sector at $213 million, followed by ILJIN Electronics at $198 million and VVDN at $129 million, according to the Tracxn data.Electronic Manufacturing Services has been the leading business model since 2025, raising $313 million.Embedded Hardware ranked second with $51.9 million, all of it raised during the trailing 12 months. Power Management Integrated Circuits and Fabless Semiconductor Manufacturers were among the other leading business models by funding.Overall sector funding rose from $49 million in 2021 to $473 million in 2025, with the five-year funding compound annual growth rate at more than 36%, according to the report.
Bengaluru dominates semiconductor funding
Bengaluru remained the largest semiconductor hub, accounting for 626 of India’s 3,557 companies, or about 18% of the total.The city also accounted for 40.1% of all equity funding raised by the sector so far.Noida followed with a 16.4% share of funding, ahead of Gurugram at 10.7%, Kochi at 8.8% and Hyderabad at 6.2%.
Acquisitions remain key exit route
Acquisitions have remained the primary exit route for Indian semiconductor companies, with 62 acquisitions compared with 42 IPOs, 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 went public.The largest recorded exit was eInfochips’ $282 million acquisition, followed by Narayan Powertech at $262 million and SmartPlay Technologies at $180 million.Among recent listings, Tempsens Instruments went public in August 2026 with a market capitalisation of $263 million, while Merritronix listed in June 2026, according to the report.
