India’s semiconductor sector has attracted $1.4 billion in cumulative equity funding across 281 funded companies, with nearly half of that amount raised since 2025, according to Tracxn data cited by PTI. Bengaluru has emerged as the country’s leading semiconductor hub, accounting for 40.1% of total equity funding raised by the sector.
The sector raised $701 million from 2025 onwards, including $228 million in 2026 so far. Overall annual funding rose from $49 million in 2021 to $473 million in 2025, while the sector recorded a five-year funding compound annual growth rate of more than 36%, the data showed.
The figures come ahead of the fifth edition of SEMICON India, which is scheduled to be held from September 17 to 19 at Yashobhoomi in Dwarka, New Delhi. Prime Minister Narendra Modi is scheduled to inaugurate the event on September 17. The event is expected to bring together global semiconductor companies, government officials, state representatives and sector experts.
India has 3,557 companies operating in the semiconductor sector, of which 142 have raised equity funding. Across all funding categories, 281 companies have received funding, according to the Tracxn data. Bengaluru accounts for 626 of the sector’s companies, or about 18% of the national total.
The concentration of funding across a small number of urban centres highlights the importance of established technology and engineering ecosystems to India’s semiconductor ambitions. Bengaluru accounted for the largest share of sector funding, followed by Noida with 16.4%, Gurugram with 10.7%, Kochi with 8.8% and Hyderabad with 6.2%.
Tessolve Semiconductor has attracted the highest cumulative funding among companies in the sector at $213 million. It was followed by ILJIN Electronics at $198 million and VVDN at $129 million. Electronic Manufacturing Services was 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 also among the leading business models by funding.
The funding pattern also shows that acquisitions remain a more common exit route than public listings. Indian semiconductor companies recorded 62 acquisitions compared with 42 initial public offerings, according to the report. Companies reached an acquisition an average of 11.8 years after their first funding round, while companies that went public took an average of 16.5 years.
The largest recorded exits included e Infochips’ $282 million acquisition, Narayan Powertech’s $262 million acquisition and Smart Play Technologies’ $180 million acquisition. Among recent listings, Tempsens Instruments went public in August 2026 with a market capitalisation of $263 million, while Merritronix listed in June 2026.
The funding data will provide a backdrop to the government and industry discussions at SEMICON India 2026. The event’s scheduled programme is the next major milestone for companies, policymakers and states seeking to expand India’s semiconductor ecosystem beyond its existing technology clusters.
