New Delhi, Sep 13 (SocialNews.XYZ) India's semiconductor sector has attracted a cumulative $1.4 billion in equity funding across 281 funded companies with nearly half of the total capital, around $701 million raised since 2025, according to a report.
A report by Tracxn showed that the nation currently hosts 3,557 semiconductor-related companies.
Of these, 281 firms have secured funding, while 142 have raised equity investments and the chip industry has garnered $228 million in funding so far in 2026, it said.
The analysis comes ahead of SEMICON India 2026 conference and exhibition which is scheduled to be held from September 17 to 19 here that will be inaugurated by Prime Minister Narendra Modi.
The report highlighted electronic manufacturing services (EMS) as the largest funding segment, attracting $313 million since 2025.
In addition, embedded hardware ranked second and secured $51.9 million over the same period with all of it raised within the last 12 months. While Power Management Integrated Circuits and Fabless Semiconductor Manufacturers also featured among the leading categories by funding.
According to the report, annual funding in the sector increased sharply from $49 million in 2021 to $473 million in 2025, a five-year compound annual growth rate (CAGR) of more than 36 per cent.
City-wise, Bengaluru remained India's leading semiconductor hub, accounting for 626 companies or around 18 per cent of the sector's total firms. The city also contributed 40.1 per cent of all equity funding raised to date.
However, Noida, Gurugram, Kochi and Hyderabad followed in terms of funding share.
On exits, acquisitions remained the preferred route with 62 acquisitions recorded compared to 42 initial public offerings (IPOs).
The report noted that companies reached acquisition in an average of 11.8 years from their first funding round, while firms that went public took an average of 16.5 years.
Source: IANS
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