India’s semiconductor sector attracts $1.4 billion in funding across 281 companies

Prime Minister Narendra Modi will inaugurate SEMICON India 2026 on September 17, as the sector raised $701 million since 2025. This includes $228 million in 2026 so far, according to Tracxn data.

Cumulative Equity Funding Sector Has

The cumulative equity funding in the sector has reached $1.4 billion across 281 funded companies. With nearly half of the amount raised since 2025.

Bengaluru remained the largest semiconductor hub, accounting for 626 of India's 3,557 companies, or about 18% of the total.

City Also Accounted

The city also accounted for 40.1% of all equity funding raised. With Noida following at 16.4%, Gurugram at 10.7%, Kochi at 8.8%, and Hyderabad at 6.2%.

Acquisitions have remained the primary exit route for Indian semiconductor companies, with 62 acquisitions compared to 42 IPOs, the report shared.

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Companies reached acquisition in an average of 11.8 years from their first funding round. Compared to 16.5 years for companies that went public.

Tessolve Semiconductor has attracted the highest cumulative funding in the sector at $213 million, followed.

Embedded Hardware ranked second with $51.9 million, all of it raised during the trailing 12 months.

The overall sector funding rose from $49 million in 2021 to $473 million in 2025. With a five-year funding compound annual growth rate at more than 36%, according to the report.

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 The sector raised $701 million since 2025.

This includes $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.

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India has 3,557 companies in the semiconductor sector, of which 142 have raised equity funding, out of 281 funded companies.

Tessolve leads cumulative fundingTessolve Semiconductor has attracted the highest cumulative funding in the sector at $213 million. Followed 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 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.

Among recent listings, Tempsens Instruments went public in August 2026 with a market capitalisation of $263 million. Meanwhile, Merritronix listed in June 2026, according to the report.