New Delhi, September 15 (Daily Kiran) : India’s semiconductor sector has successfully raised a total of $1.4 billion in funding, with more than half of this capital secured since 2025, according to a report released on Tuesday.
The report from Traxion Technologies highlights that the country’s semiconductor ecosystem comprises 3,557 companies, of which 281 have secured funding, and 142 have attracted equity investments.
Funding activity has surged in recent years, with an increasing number of large deals. The two largest funding rounds occurred in September 2025, with IL JAIN Electronics raising $198 million in private equity and Tesolv Semiconductor securing $150 million in a similar round.
Additionally, the electronic manufacturing services segment has emerged as the leading area for funding, amassing $313 million since 2025, including $89 million raised in the past year. The embedded hardware sector follows closely, having raised $51.9 million, all within the last 12 months.
Other notable sectors attracting investor attention include power management integrated circuits and fabless semiconductor manufacturing.
Bengaluru continues to be a central hub for semiconductor companies, hosting 626 firms, which represents approximately 18% of the total ecosystem. This city accounts for nearly 40% of the total equity funding raised in the sector.
Noida, Gurugram, Kochi, and Hyderabad are also recognized as significant semiconductor clusters.
The report indicates that in 2026 alone, there have been 62 acquisitions and 42 initial public offerings (IPOs) in this sector. This data reflects a growing interest from investors as India aims to strengthen its domestic capabilities in chip design, manufacturing, and the electronics value chain.
Government statistics reveal that electronics production has surged from approximately ₹1.9 lakh crore in 2014-15 to an estimated ₹13.11 lakh crore in 2025-26. During the same period, electronics exports have increased from around ₹38,000 crore to ₹4.24 lakh crore.
Furthermore, mobile phone production has risen dramatically from ₹18,000 crore to ₹6.27 lakh crore, while mobile phone exports have grown from approximately ₹1,500 crore to ₹2.59 lakh crore.
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