A new report reveals equity funding in Indian chip ventures has surged since 2025, driven by growth in electronic manufacturing services.
India’s semiconductor industry has secured $1.4 billion in total equity financing across 281 funded firms, with half of the sum—$701 million—raised since 2025, according to data from market intelligence platform Tracxn.
The data release precedes the fifth edition of SEMICON India 2026, scheduled for 17–19 September at Yashobhoomi in New Delhi, where Prime Minister Narendra Modi is set to open the event.
The country hosts 3,557 businesses operating within the semiconductor ecosystem. Year-to-date funding for 2026 stands at $228 million. Tessolve Semiconductor leads historical fundraising totals with $213 million, followed by ILJIN Electronics at $198 million and VVDN at $129 million.
Electronic Manufacturing Services has proven the most attractive sub-sector for investors, capturing $313 million since 2025. Embedded Hardware secured $51.9 million over the same period, with Power Management Integrated Circuits and Fabless Semiconductor Manufacturers also drawing significant backing. Total sector funding grew from $49 million in 2021 to $473 million in 2025, representing a five-year compound annual growth rate of over 36 per cent.
Bengaluru remains India’s primary hardware hub, accounting for 626 companies—roughly 18% of the national total—and 40.1 per cent of all equity capital raised. Noida, Gurugram, Kochi, and Hyderabad follow in funding share.
Acquisitions serve as the primary exit route for Indian semiconductor firms, with 62 trade sales recorded compared to 42 initial public offerings. Companies reached acquisition status in an average of 11.8 years from initial funding, compared to 16.5 years for those listing publicly. Notable exits include the $282 million acquisition of eInfochips, alongside recent public listings by Tempsens Instruments and Merritronix in 2026.
