India's semiconductor sector attracts $1.4 billion funding
India's semiconductor sector has raised a total of $1.4 billion in equity funding with nearly half of the capital secured since 2025, according to a report released on Tuesday.
A report by Tracxn Technologies said the country's semiconductor ecosystem comprises 3,557 companies, of which 281 have raised funding and 142 have secured equity investments.
According to the report, funding activity has gained momentum in recent years, with capital increasingly flowing into a smaller number of larger transactions.
The two biggest funding rounds were IL JIN Electronics' $198 million private equity raise in September 2025 and Tessolve Semiconductor's $150 million private equity round in the same month.
Moreover, Electronic Manufacturing Services (EMS) emerged as the most-funded business segment and attracted $313 million since 2025, including $89 million in the trailing 12 months. Embedded Hardware followed with $51.9 million raised since 2025, all of it secured over the past 12 months.
Other prominent segments attracting investor interest include Power Management Integrated Circuits and Fabless Semiconductor Manufacturing, the report said.
Bengaluru remained the leading hub for semiconductor companies, hosting 626 firms or around 18 per cent of the total ecosystem. The city accounted for about 40 per cent of all equity funding raised by the sector to date.
Noida, Gurugram, Kochi and Hyderabad also featured among key semiconductor clusters.
The report further noted that the sector has recorded 62 acquisitions and 42 initial public offerings (IPOs) as of 2026 year-to-date.
The report said the data reflects growing investor interest in India's semiconductor ecosystem as the country seeks to strengthen domestic capabilities across chip design, manufacturing and electronics value chains.
Additionally, electronics production rose from about Rs 1.9 lakh crore in 2014-15 to Rs 13.11 lakh crore in 2025-26, while electronics exports increased from around Rs 38,000 crore to Rs 4.24 lakh crore during the period, according to the government data.
Mobile phone production increased from Rs 18,000 crore to Rs 6.27 lakh crore over the same period, while mobile phone exports rose from about Rs 1,500 crore to Rs 2.59 lakh crore, it added.
