Semiconductor Funding in India Reaches $1.4 Billion, $701 Million Raised Since 2025!

India’s Semiconductor Companies have raised $701 million in equity funding since 2025, taking the sector’s total funding to $1.4 billion, according to an Economic Times news report citing Tracxn.  

The funding has been spread across 281 companies. The sector has raised $228 million so far in 2026. India currently has 3,557 companies operating in semiconductors, although 142 of the funded companies have specifically raised equity funding. 

EMS Draws Largest Funding 

Electronic Manufacturing Services (EMS) has accounted for $313 million of funding since 2025, making it the largest funded business model in the sector. 

Embedded Hardware followed with $51.9 million. The entire amount raised by the segment came during the trailing 12 months. Power Management Integrated Circuits and fabless semiconductor manufacturers were also among the segments receiving funding. 

Funding Was $49 Million in 2021 

The increase in funding has been spread over several years. The sector raised $49 million in 2021, compared with $473 million in 2025. Its five-year funding CAGR was more than 36%. 

Tessolve Semiconductor has received the highest cumulative funding at $213 million. ILJIN Electronics stands at $198 million and VVDN at $129 million. 

Bengaluru Remains the Main Funding Centre 

Bengaluru has 626 semiconductor companies, representing about 18% of the 3,557 companies in the sector. It also accounts for 40.1% of the equity funding raised so far. 

The funding share stood at 16.4% for Noida, 10.7% for Gurugram, 8.8% for Kochi, and 6.2% for Hyderabad. 

More Acquisitions Than IPOs 

The sector has seen 62 acquisitions against 42 IPOs. Companies that were acquired took an average of 11.8 years from their first funding round, while those that went public took 16.5 years. 

eInfochips recorded the largest exit at $282 million, followed by Narayan Powertech at $262 million and SmartPlay Technologies at $180 million. 

New Listings in 2026 

Tempsens Instruments went public in August 2026 with a market capitalisation of $263 million. Merritronix listed in June 2026. 

The latest funding figures come before SEMICON India 2026, which is scheduled for September 17-19, 2026, at Yashobhoomi in Dwarka, New Delhi.  

Read More: BRICS Business Forum 2026: Piyush Goyal Seeks Open Markets, Fewer Trade Barriers and Payment System Links! 

Conclusion 

The sector has recorded a rise in funding in recent years, with companies raising $701 million since 2025. EMS accounts for the largest funding among business models. 

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