Bengaluru: India’s semiconductor sector has raised $1.4 billion in all-time equity funding, with half of the total, or $701 million, raised since 2025, including $228 million in 2026 YTD, according to the Semiconductors – India Report released by Tracxn Technologies Limited.
The Semiconductors – India Report covers equity funding, investor activity, acquisitions, IPOs and company activity across India’s semiconductor ecosystem.
The report tracks 3,557 companies, of which 281 have raised funding, including 142 companies that have raised equity funding.
The report highlights a semiconductor sector where funding momentum has increased in recent years, while capital is increasingly concentrated among notable players.
At the same time, business-model data indicates a shift away from Electronic Manufacturing Services (EMS) towards Fabless Semiconductor Manufacturing and Embedded Hardware.
Tessolve Semiconductor and ILJIN Electronics Lead Funding
According to the Semiconductors – India Report, Tessolve Semiconductor leads the sector in cumulative funding at $213 million, followed by ILJIN Electronics with $198 million and VVDN with $129 million.
Since 2025, ILJIN Electronics has recorded the largest funding round in the sector, raising a $198 million private equity round in September 2025.
The Semiconductors – India Report also identifies Tessolve Semiconductor’s $150 million private equity round in September 2025 as the second-largest funding round during the period.
Overall, India’s semiconductor sector has raised $1.4 billion in all-time equity funding, with half of that amount coming since 2025. Of the 3,557 companies tracked by the report, 281, or around 8%, have raised funding, including 142 equity-funded companies.
Electronic Manufacturing Services Leads Recent Funding
The Semiconductors – India Report shows that Electronic Manufacturing Services has attracted the largest share of recent funding among business models.
EMS companies have raised $313 million since 2025, including $89 million in the trailing 12 months.
Embedded Hardware ranks second, with $51.9 million raised since 2025, with the entire amount coming during the trailing 12-month period.
Other leading business models identified in the Semiconductors – India Report include Power Management Integrated Circuits and Fabless Semiconductor Manufacturers.
The business-model level data points to a rotation away from Electronic Manufacturing Services towards Fabless Semiconductor Manufacturing and Embedded Hardware, according to the report.
Also Read: Kerala Gaming Startup ARC Secures ₹10.5 Crore in Pre-Seed Funding
Bengaluru Accounts for 40.1% of Equity Funding
Bengaluru continues to be the dominant base for India’s semiconductor ecosystem, according to the Semiconductors – India Report.
The city is home to 626 of India’s 3,557 semiconductor companies, accounting for about 18% of the sector’s total company base. Bengaluru also accounts for 40.1% of all equity funding raised by the sector.
Key players contributing to Bengaluru’s funding concentration include Tessolve Semiconductor, CoreEL and C2I Semiconductors.
The report identifies Noida, Gurugram, Kochi and Hyderabad as other significant semiconductor hubs, although their funding shares remain lower than Bengaluru’s.
As of 2026 YTD, Noida accounts for 16.4% of the sector’s funding share, followed by Gurugram at 10.7%, Kochi at 8.8% and Hyderabad at 6.2%.
The geographic concentration highlighted in the Semiconductors – India Report reflects the presence of established semiconductor and electronics companies across these hubs.
Semiconductors – India Report: Acquisitions Outpace IPOs as Exit Route
The Semiconductors – India Report also examines exits across India’s semiconductor sector, with acquisitions emerging as the primary exit route.
The sector has recorded 62 acquisitions compared with 42 IPOs as of 2026 YTD.
Companies in the sector reach acquisition in an average of 11.8 years from their first funding, compared with an average of 16.5 years for companies reaching an IPO.
The largest exit recorded in the sector is eInfochips’ $282 million acquisition.
Recent semiconductor companies to go public include Tempsens Instruments in August 2026 and Merritronix in June 2026.
Semiconductor Sector Funding Gains Momentum
The findings of the Semiconductors – India Report point to increasing funding activity across India’s semiconductor ecosystem, with significant capital raised by a relatively small group of companies.
India’s semiconductor sector comprises 3,557 companies, but only 281 have raised funding, while 142 have secured equity funding. The total equity funding raised by the sector stands at $1.4 billion, with $701 million raised since 2025.
Of the funding raised since 2025, $228 million was recorded in 2026 YTD, highlighting continued capital activity in the sector.
Tracxn Technologies Limited, a data intelligence platform, released the Semiconductors – India Report covering the sector’s funding trends, investor activity, acquisitions, IPOs, business models and geographic concentration.
The report also tracks the evolution of India’s semiconductor ecosystem, including the growing role of Fabless Semiconductor Manufacturing, Embedded Hardware and Electronic Manufacturing Services in attracting capital.
