New Delhi, September 13 (Daily Kiran) : India’s semiconductor industry is rapidly gaining the attention of investors. A recent report reveals that the sector has raised a total of $1.4 billion in equity funding through 281 funded companies. Notably, nearly $701 million, which accounts for about half of this investment, was secured after 2025, indicating growing investor confidence in the field.
According to the report by Traxion, there are currently 3,557 semiconductor-related companies operating in India. Among these, 281 have received funding, and 142 companies have successfully raised equity investments. In just 2026, the industry has attracted $228 million in funding.
This report comes ahead of the Semicon India 2026 conference and exhibition, scheduled to take place in New Delhi from September 17 to 19, which will be inaugurated by Prime Minister Narendra Modi. The industry anticipates that this event will play a crucial role in establishing India as a global hub for semiconductor manufacturing and design.
The report highlights that electronic manufacturing services have been the most attractive segment for investment, drawing in $313 million since 2025. Following closely is the embedded hardware segment, which raised $51.9 million, all within the last 12 months. Additionally, power management integrated circuits and fabless semiconductor manufacturers have also emerged as significant categories for investment.
Investment in India’s semiconductor sector has accelerated in recent years. The report indicates that annual funding rose from $49 million in 2021 to $473 million by 2025, reflecting a compound annual growth rate (CAGR) of over 36%.
Key drivers of this growth include government production-linked incentive (PLI) schemes, the semiconductor mission, efforts to diversify global supply chains, and a boost in domestic electronics manufacturing.
Bengaluru has emerged as India’s largest semiconductor hub, hosting 626 companies, which make up approximately 18% of the total semiconductor companies in the country. In terms of funding, Bengaluru leads with a 40.1% share of the total equity funding raised so far, followed by Noida, Gurugram, Kochi, and Hyderabad.
The report also notes that acquisitions remain the most popular exit strategy for companies in this sector, with 62 acquisitions recorded to date, while 42 companies have accessed public markets through IPOs. On average, it takes about 11.8 years for a company to reach acquisition after its first funding, while those going public via IPOs take around 16.5 years.
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