India's semiconductor sector has drawn 1.4 billion dollars in all-time equity funding across 281 funded companies, with nearly half arriving since 2025, as Prime Minister Narendra Modi inaugurates the fifth edition of SEMICON India 2026 in New Delhi amid soaring global demand and major capacity expansions.
SEMICON India 2026 Inauguration by Narendra Modi in New Delhi
The fifth edition of SEMICON India 2026 opened from September 17-19 at Yashobhoomi in Dwarka, New Delhi, bringing together global semiconductor industry leaders, government officials, state representatives, and sector experts. Prime Minister Narendra Modi formally inaugurated the fifth edition of SEMICON India 2026 on September 17, highlighting a domestic ecosystem experiencing rapid structural acceleration.
Tracxn Data on Semiconductor Footprint and Funding Growth
According to figures compiled by Tracxn, out of 281 funded companies in the country's semiconductor sector—which totals 3,557 entities—142 have successfully secured equity financing. The sector recorded 228 million dollars in funding year-to-date (YTD) in 2026, building on a dramatic climb from 49 million dollars in 2021 to 473 million dollars in 2025. Over the five-year span, the funding compound annual growth rate (CAGR) stood at over 36 per cent.
Funding Leadership Across Business Models and Regional Hubs
Electronic Manufacturing Services and Bengaluru Funding Share
Electronic Manufacturing Services has led India’s semiconductor sector’s funding, securing 313 million dollars since 2025. Coming in at number two was Embedded Hardware, which secured 51.9 million dollars beginning in 2025—all within the past 12 months—while Fabless Semiconductor Manufacturers and Power Management Integrated Circuits ranked among the other top business models based on funding.
Tessolve Semiconductor leads the sector in cumulative funding at 213 million dollars till date, followed by ILJIN Electronics (USD 198 million) and VVDN ($129 million).
In terms of geography, Bengaluru retained its status as the primary center, housing 626 out of the 3,557 industry players—representing roughly 18 per cent of the overall count—while also generating 40.1 per cent of all equity capital acquired thus far.
It was followed by Noida (16.4 per cent) in terms of funding share. Gurugram captures 10.7 per cent. Kochi accounts for 8.8 per cent. Hyderabad represents 6.2 per cent of total funding.
Commercial Production Expansion and Phase Two Policies
Ajit Manocha and Mark Patel Discussion on Global Industry Projections
Ajit Manocha, President and CEO, SEMI, got into a discussion along with Mark Patel, Senior Partner, McKinsey. The global semiconductor industry is growing like never before. It should reach 2 trillion dollars by 2030. In India, 12 projects have been approved. India demand has been doubling. Chip demand should be $100-$110 billion by 2030. The world demand is growing at ~60%. Manocha said IoT started connecting all devices. He had made the prediction in 2017 that the semiconductor industry will reach 1 trillion dollars. Couple of years later everybody started going with him. This year, we found out we had exceeded 1 trillion dollars. AI is the key driver and revolution. AI-enabled chips are going through the roof, and so is the industry. We will end up with 2 trillion dollars soon. The only thing that can slow us down is the geopolitical issue. AI-enabled growth is there for the next decade. Quantum wave is also next. Dr. Mukesh Khare of IBM is leading quantum. The potential is huge. Sectors such as industrial IoT, automotive, etc., are also growing. Manocha said the price hike in memory is not yet showing in the trends. We all have learned the lesson how semiconductors are important for our lives. Everything was dependent on devices. Recently, during Russia and Iran wars, the visibility has really gone up. Every country is declaring that semiconductors are critical and important for economic and national security. GPUs, CPUs, etc., are now being priced higher. Semiconductors could soon reach no. 2. It is very important for humanity. Where semiconductors have gone, prosperity has followed. Asia is a prime example. Those regions have succeeded as they have been part of the value chain. What lessons should India take? Manocha said it is more relevant for India now. South Korea is a powerhouse for consumer products. Taiwan is an undisputable powerhouse for chips and leading edge. China is a powerhouse for electronics. We need to understand all of this for India.
SEMICON India 2026 runs through September 19 at Yashobhoomi, serving as a barometer for whether the country can cement its position in the global chip supply chain.