New Delhi- India’s semiconductor industry has attracted a total of $1.4 billion in equity funding, with nearly half of that capital raised since 2025, highlighting the growing investor focus on the country’s ambitions to build a stronger domestic chip ecosystem.
According to a report by Tracxn Technologies, India’s semiconductor ecosystem currently comprises 3,557 companies. Of these, 281 have raised funding, while 142 have secured equity investments.
The report noted that funding momentum has accelerated in recent years, although investment is increasingly being concentrated in a smaller number of larger transactions.
The two biggest funding rounds were IL JIN Electronics’ $198 million private equity investment in September 2025 and Tessolve Semiconductor’s $150 million private equity round during the same month.
Electronic Manufacturing Services (EMS) has emerged as the most-funded segment, attracting $313 million since 2025, including $89 million in the past 12 months. Embedded Hardware was the next major segment, raising $51.9 million since 2025, with the entire amount coming in during the last 12 months.
Other areas drawing investor attention include Power Management Integrated Circuits and fabless semiconductor manufacturing, indicating that investment is spreading beyond traditional electronics manufacturing into specialised chip technologies and design capabilities.
Bengaluru continues to be the country’s biggest semiconductor hub, with 626 companies, accounting for around 18 per cent of the overall ecosystem. The city has also attracted about 40 per cent of the sector’s total equity funding so far.
Noida, Gurugram, Kochi and Hyderabad have also emerged as important semiconductor clusters, reflecting the expansion of India’s electronics and chip-related activity beyond Bengaluru.
The sector has also recorded 62 acquisitions and 42 initial public offerings (IPOs) in 2026 so far, according to the report.
The funding trend comes as India seeks to strengthen its position across the semiconductor value chain, including chip design, manufacturing, packaging and testing, as well as electronics production. Building domestic capabilities in these areas is seen as important for reducing dependence on overseas supply chains and supporting the country’s broader electronics manufacturing ambitions.
Government data cited in the report shows the scale of India’s electronics expansion. Electronics production increased from around Rs 1.9 lakh crore in 2014-15 to Rs 13.11 lakh crore in 2025-26. During the same period, electronics exports rose sharply from about Rs 38,000 crore to Rs 4.24 lakh crore.
Mobile phone manufacturing has been a major contributor to this growth. Production increased from around Rs 18,000 crore in 2014-15 to Rs 6.27 lakh crore in 2025-26, while mobile phone exports climbed from approximately Rs 1,500 crore to Rs 2.59 lakh crore.
The rising flow of private capital, combined with the rapid expansion of electronics manufacturing and exports, suggests that India’s semiconductor push is increasingly moving from policy ambition towards a broader industrial ecosystem involving startups, manufacturers, chip designers and specialised technology companies.
–IANS