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Bengaluru stays at the heart of India's semiconductor investments

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News Analysis IndiaReporter
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September 15, 2026
11:34 AM
Bengaluru stays at the heart of India's semiconductor investments

According to a detailed industry report, India's semiconductor sector has amassed $1.4 billion in financing, most of which was raised after 2025. Out of 3,557 companies mapped in the ecosystem, 281 have attracted capital and 142 secured equity. The financing tempo has quickened, with a clear trend toward higher‑value transactions. The two largest rounds recorded in September 2025 were a $198 million private‑equity deal for I​L​J​E​N Electronics and a $150 million private‑equity infusion into Tesolve Semiconductor. The EMS (Electronic Manufacturing Services) segment has become the top‑funded business line, pulling $313 million since 2025, including $89 million in the last 12 months. Embedded hardware follows with $51.9 million, all raised in the past year. Investors are also focusing on power‑management ICs and fab‑less semiconductor production. Bengaluru emerges as the primary hub, with 626 companies – about 18 % of the total – and represents roughly 40 % of all equity funding to date. Other significant clusters are Noida, Gurgaon, Kochi and Hyderabad. The sector has already witnessed 62 acquisitions and 42 IPOs in 2026, reflecting growing confidence. Government figures indicate that electronics output rose from about ₹1.9 lakh crore in FY‑14/15 to ₹13.11 lakh crore in FY‑25/26, while exports expanded from ₹38,000 crore to ₹4.24 lakh crore. Mobile phone production increased from ₹18,000 crore to ₹6.27 lakh crore, with exports moving from ₹1,500 crore to ₹2.59 lakh crore.

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