India's semiconductor startup ecosystem is growing faster, with 281 startups collectively raising around $1.4 billion in equity funding, nearly half of it coming since 2025, according to Tracxn data. The sector has raised $701 million since 2025, including $228 million so far in 2026, ahead of SEMICON India 2026 in New Delhi.
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Prime Minister Narendra Modi is scheduled to inaugurate the fifth edition of 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.
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According to Tracxn, India has 3,557 semiconductor companies, with 281 having received funding. Tessolve Semiconductor leads cumulative funding at USD 213 million, followed by ILJIN Electronics at USD 198 million and VVDN at USD 129 million.
Electronic Manufacturing Services has emerged as the leading funded business segment since 2025, attracting USD 313 million. Embedded Hardware ranked second with USD 51.9 million, while Power Management Integrated Circuits and fabless semiconductor manufacturers were among other key segments.
Funding has grown sharply over the past five years, rising from USD 49 million in 2021 to USD 473 million in 2025, representing a five-year funding CAGR of more than 36 per cent.
Bengaluru continues to dominate India's semiconductor landscape, housing 626 enterprises, representing approximately 18% of the national total, and capturing 40.1% of cumulative equity funding, with Noida, Gurugram, Kochi, and Hyderabad trailing in funding allocation.
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Acquisitions remain the preferred exit route, with 62 acquisitions compared with 42 IPOs. Companies reached acquisition in an average 11.8 years after their first funding round, versus 16.5 years for those going public. eInfochips led all recorded exits with its $282 million acquisition, followed by Narayan Powertech at $262 million and SmartPlay Technologies at $180 million.
(With the PTI inputs)
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