India semiconductor funding: $1.4 billion across 281 companies
India semiconductor funding has reached $1.4 billion across 281 funded companies, with $701 million raised since 2025 alone, according to data from Tracxn. That means nearly half of the sector’s all-time equity funding has come in the most recent period covered by the data.
The figures point to a sector that is attracting capital at a faster pace, but not evenly across companies, business models or cities. They also come days before SEMICON India 2026, scheduled for September 17-19 at Yashobhoomi in Dwarka, New Delhi.
India semiconductor funding has accelerated since 2025
Funding rose from $49 million in 2021 to $473 million in 2025. The five-year funding compound annual growth rate stood at over 36 per cent, according to the report. The sector recorded $228 million in funding in 2026 year-to-date. That figure should not be read as a full-year comparison with 2025 without a like-for-like period.
The recent funding concentration is clear: $701 million of the $1.4 billion raised to date came in since 2025. The source does not explain whether this increase reflects larger rounds, more funded companies, or a change in the mix of semiconductor businesses.
Which semiconductor businesses are attracting capital
Electronic Manufacturing Services led funding since 2025, securing $313 million. Embedded Hardware ranked second with $51.9 million raised since 2025, entirely within the trailing 12 months.
Power Management Integrated Circuits and Fabless Semiconductor Manufacturers were also among the leading business models by funding. The source does not provide the funding totals for those categories.
At the company level, Tessolve Semiconductor leads cumulative funding at $213 million till date. ILJIN Electronics follows with $198 million, while VVDN has raised $129 million.
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Bengaluru remains the main funding hub
Bengaluru is home to 626 of India’s 3,557 semiconductor companies, about 18 per cent of the total. It also accounts for 40.1 per cent of all equity funding raised to date. Noida follows with 16.4 per cent of funding, followed by Gurugram at 10.7 per cent, Kochi at 8.8 per cent and Hyderabad at 6.2 per cent.
The concentration in Bengaluru suggests that company count and funding share are not distributed evenly across India. The source does not establish why Bengaluru attracts a larger share of capital.
How broad is India’s semiconductor funding base?
India is home to 3,557 companies in the sector. The report says 142 have raised equity funding, out of 281 funded companies.
Those figures use categories that are not defined in the source text. The relationship between companies that have raised equity funding and the broader group of funded companies therefore requires clarification.
That distinction matters when assessing whether the sector’s funding growth represents a broad expansion or a smaller group of companies receiving larger amounts. The available data shows the scale and concentration of capital, but not the full distribution of funding across the company base.
Why the timing matters
The findings were released ahead of SEMICON India 2026, which will bring together global semiconductor industry leaders, government officials, state representatives and sector experts from September 17-19. Prime Minister Narendra Modi is scheduled to inaugurate the event on September 17.
The funding data gives the event a clear backdrop: India’s semiconductor sector has attracted $1.4 billion in all-time equity funding, with nearly half raised since 2025. The next question is whether that recent momentum broadens beyond the leading companies, business models and hubs identified in the report.
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