India’s Semiconductor Sector Raises USD 1.4 Bn in Equity Funding: Tracxn
Tracxn report: India’s semiconductor sector raised USD 1.4 billion in equity funding, half since 2025, led by Tessolve and ILJIN.
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India’s semiconductor sector has raised USD 1.4 billion in all-time equity funding, with half of that total, USD 701 million, raised since 2025, including USD 228 million in 2026 year-to-date, according to a report by Tracxn Technologies. Of the 3,557 companies tracked in the sector, 281 have raised funding, of which 142 are equity-funded.
Tessolve Semiconductor leads in cumulative funding at USD 213 million to date, followed by ILJIN Electronics at USD 198 million and VVDN at USD 129 million. Since 2025, ILJIN Electronics recorded the sector’s largest single round, a USD 198 million PE raise in September 2025, followed by Tessolve Semiconductor’s USD 150 million PE round in the same month.
Business-model data shows a rotation away from Electronic Manufacturing Services toward Fabless Semiconductor Manufacturing and Embedded Hardware. Electronic Manufacturing Services remains the top-funded model since 2025 with USD 313 million raised, including USD 89 million in the trailing 12 months. Embedded Hardware ranks second at USD 51.9 million, raised entirely in the trailing 12 months, followed by Power Management Integrated Circuits and Fabless Semiconductor Manufacturers.
Bengaluru remains the dominant hub, home to 626 of the sector’s 3,557 companies, about 18% of the total, and accounting for 40.1% of all equity funding to date. It is followed by Noida (16.4%), Gurugram (10.7%), Kochi (8.8%) and Hyderabad (6.2%). Tessolve Semiconductor, Coreel and C2I Semiconductors are among the key companies driving Bengaluru’s share.
Acquisitions remain the primary exit route for Indian semiconductor companies, with 62 acquisitions recorded as of 2026 YTD compared with 42 IPOs. Companies reached acquisition in an average of 11.8 years from first funding, versus 16.5 years for IPOs. The largest exit on record is eInfochips’ USD 282 million acquisition. Recent IPOs include Tempsens Instruments in August 2026 and Merritronix in June 2026.
India’s semiconductor sector has raised USD 1.4 billion in all-time equity funding, with half of that total, USD 701 million, raised since 2025, including USD 228 million in 2026 year-to-date, according to a report by Tracxn Technologies. Of the 3,557 companies tracked in the sector, 281 have raised funding, of which 142 are equity-funded.
Tessolve Semiconductor leads in cumulative funding at USD 213 million to date, followed by ILJIN Electronics at USD 198 million and VVDN at USD 129 million. Since 2025, ILJIN Electronics recorded the sector’s largest single round, a USD 198 million PE raise in September 2025, followed by Tessolve Semiconductor’s USD 150 million PE round in the same month.
Business-model data shows a rotation away from Electronic Manufacturing Services toward Fabless Semiconductor Manufacturing and Embedded Hardware. Electronic Manufacturing Services remains the top-funded model since 2025 with USD 313 million raised, including USD 89 million in the trailing 12 months. Embedded Hardware ranks second at USD 51.9 million, raised entirely in the trailing 12 months, followed by Power Management Integrated Circuits and Fabless Semiconductor Manufacturers.
