India's semiconductor sector attracted $1.4 billion according to report
Read more
YourStory [india, en]
yourstory.com

India's semiconductor sector attracted $1.4 billion according to report

According to data from Tracxn, the Indian semiconductor sector has attracted a total of $1.4 billion in equity funding to date, with nearly half of this amount, specifically $701 million, raised since 2025.

These findings were released shortly before SEMICON India 2026, the country's flagship conference and exhibition, which will take place from September 17 to 19 in Yashobhoomi in Dwarka, New Delhi.

Prime Minister Narendra Modi will inaugurate the fifth edition of SEMICON India 2026 on September 17. This major event will gather global leaders of the semiconductor industry, government officials, state representatives, and industry experts as India continues to develop its growing semiconductor ecosystem.

The Indian sector comprises 3,557 companies, of which 142 have attracted equity funding, and they are part of this number among 281 funded companies. According to Tracxn, in 2026, the sector received $228 million in funding at the beginning of the year.

Tessolve Semiconductor is the leader in the sector by cumulative funding with $213 million to date. It is followed by ILJIN Electronics ($198 million USD) and VVDN ($129 million).

Electronic Manufacturing Services secured the largest funding in the sector, receiving $313 million since 2025. Embedded Hardware ranked second, collecting $51.9 million since 2025—and this entire amount was raised in the last 12 months. Other leading business models for funding include Power Management Integrated Circuits and Fabless Semiconductor Manufacturers.

The report shows that sector funding increased from $49 million in 2021 to $473 million in 2025. The five-year compound annual growth rate (CAGR) of funding was over 36 percent.

Bangalore remained the dominant hub, hosting 626 out of the 3,557 sector companies, accounting for about 18 percent of the total. Bangalore accounted for 40.1 percent of all equity funding to date. Noida followed in terms of funding share (16.4 percent), Gurugram (10.7 percent), Kochi (8.8 percent), and Hyderabad (6.2 percent).

Popular