India's semiconductor sector has demonstrated remarkable growth, attracting $1.4 billion in cumulative equity funding across 281 funded companies, according to Tracxn data cited by PTI. The sector's funding trajectory shows significant acceleration, with $701 million raised since 2025, including $228 million in 2026 year-to-date. This growth comes as India prepares to host the fifth edition of SEMICON India from September 17-19 at Yashobhoomi in Dwarka, New Delhi, with Prime Minister Narendra Modi set to inaugurate the event on September 17. The conference is expected to bring together global semiconductor companies, government officials, state representatives and industry experts as India seeks to strengthen its position in the global semiconductor supply chain.
Tessolve Semiconductor leads cumulative funding with $213 million, followed by ILJIN Electronics at $198 million and VVDN at $129 million, according to Tracxn data. Electronic Manufacturing Services has emerged as the leading business model since 2025, raising $313 million and securing $228 million in 2026 year-to-date. Embedded Hardware ranked second with $51.9 million, all raised during the trailing 12 months, while Power Management Integrated Circuits and fabless semiconductor manufacturers were among other key segments. India's semiconductor sector comprises 3,557 companies, of which 142 have raised equity funding, out of the total 281 funded companies.
Bengaluru remains the dominant semiconductor hub, accounting for 626 of India's 3,557 companies or about 18% of the total, while also capturing 40.1% of all equity funding raised by the sector. Noida follows with a 16.4% share of funding, ahead of Gurugram at 10.7%, Kochi at 8.8%, and Hyderabad at 6.2%. Overall sector funding demonstrated exceptional growth, rising from $49 million in 2021 to $473 million in 2025, with a five-year compound annual growth rate exceeding 36%.
Acquisitions have emerged as the primary exit route for Indian semiconductor companies, with 62 acquisitions compared to 42 IPOs. 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. 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.
