Indian Semiconductor Startups Raise USD 206 Mn Since 2022

Indian semiconductor startups have raised approximately USD 206 million across 51 funding rounds since 2022, according to the Indian Semiconductor Startup Landscape 2026 report by Speciale Invest and the Startup Policy Forum (SPF). 

The sector raised USD 61.9 million in H1 2026, equal to 81% of the USD 76.6 million raised in 2025. Annual funding rose from USD 1.5 million in 2022 to USD 76.6 million in 2025.

However, the number of rounds fell from 16 in 2024 to 13 in 2025 and seven in H1 2026, indicating greater concentration of capital in startups further along in product development and commercialization.

The report was released by Arjun Rao, Co-founder and General Partner, Speciale Invest, in the presence of S. Krishnan, Secretary, Ministry of Electronics and Information Technology (MeitY), at Semicon Baatcheet, organised by SPF.

DLI-backed startups draw private capital

Of the 24 chip-design projects supported under the Design Linked Incentive (DLI) programme, 14 have raised institutional venture capital, securing USD 100.8 million across their first and second rounds.

Six startups have also raised follow-on rounds worth USD 53.6 million. C2i Semiconductors, NetraSemi, Morphing Machines and Mindgrove Technologies account for about 56% of private capital raised by DLI-backed companies.

Vishesh Rajaram, Managing Partner, Speciale Invest, said: “2026 feels like an important point in the evolution of India’s semiconductor startup ecosystem. The design talent has been here for decades; what is changing is the capital stack around it.”

Series A funding reaches USD 73.7 million

Seven recent Series A rounds raised a combined USD 73.7 million, or about one-third of all semiconductor startup capital raised since 2022. Some startups have moved from seed to Series A within seven to 22 months.

Strategic investors are also participating in the sector. Zoho and TDK Ventures have invested in semiconductor startups, while global semiconductor companies are taking equity positions in Indian companies. Such investors can provide access to fabs, tool credits, reference customers and design partnerships.

The report identifies equipment and materials, design IP and EDA, and analog and RF as areas with further potential. It also expects India Semiconductor Mission 2.0 (ISM 2.0) to create opportunities.

Speciale Invest will track Series A and B funding, India’s first USD100 million-plus semiconductor product exits, sovereign customer orders and the commercial performance of new semiconductor packaging capacity.