According to manufacturing.economictimes.indiatimes.com, India’s semiconductor sector has attracted $1.4 billion in all-time equity funding across 281 funded companies, with nearly half — $701 million — raised since 2025 alone, per data from Tracxn.
Funding Trajectory and Key Recipients
The sector’s total equity funding surged from $49 million in 2021 to $473 million in 2025, reflecting a five-year compound annual growth rate (CAGR) of over 36%. In 2026 year-to-date, $228 million has been raised. Tessolve Semiconductor leads cumulative funding at $213 million, followed by ILJIN Electronics ($198 million) and VVDN ($129 million).
Business Models and Geographic Concentration
Electronic Manufacturing Services secured the largest share of recent capital, raising $313 million since 2025. Embedded Hardware ranked second with $51.9 million — entirely within the trailing 12 months. Bengaluru hosts 626 of India’s 3,557 semiconductor companies — about 18% of the total — and accounts for 40.1% of all equity funding. Noida follows with 16.4%, Gurugram at 10.7%, Kochi at 8.8%, and Hyderabad at 6.2%.
Exit Activity and Recent Listings
Acquisitions remain the dominant exit route: the sector recorded 62 acquisitions versus 42 initial public offerings (IPOs). Companies reached acquisition in an average of 11.8 years from their first funding round, compared to 16.5 years for those going public. The largest acquisition was eInfochips’ $282 million deal, followed by Narayan Powertech ($262 million) and SmartPlay Technologies ($180 million). Tempsens Instruments listed in August 2026 with a market capitalisation of $263 million, while Merritronix went public in June 2026.
Source: manufacturing.economictimes.indiatimes.com
Compiled from international media by the SCI.AI editorial team.
