With entrepreneurs in the semiconductor industry raising $92 million across 12 investment deals in the first five months of 2026—nearly four times the total capital raised in 2025—India’s semiconductor startup ecosystem is seeing tremendous investor momentum.
According to statistics from Venture Intelligence, government assistance, rising demand for AI-driven technologies, and advancing commercial manufacturing all contributed to semiconductor companies securing substantial funding between January and May. During that time, businesses including Constelli, C2i Semiconductors, HrdWyr, and VerveSemi each raised more than $10 million.
Eight agreements totaling $34 million came from seed-stage investors this year; the remaining funds were obtained through Series A rounds. In contrast, the industry brought in just $25 million from six transactions in 2025.
Industry stakeholders attribute the growth largely to the government’s Design Linked Incentive (DLI) scheme, which supports domestic chip design companies by reducing early-stage risks and encouraging private capital participation. Venture capital has been successfully raised for a number of DLI-backed companies, including Mindgrove Technologies, VerveSemi, InCore, BigEndian Semiconductors, and Calligo Technologies.
With several startups finishing chip designs and shipping them to foundries in Taiwan and South Korea for production, the industry has also made significant technological advancements. Later this year, some companies are anticipated to start commercial production.
Former executives from multinational chipmakers like AMD, Intel, and Texas Instruments have started firms focused on AI chips and power management solutions as a result of the increased interest in semiconductor innovation brought about by the development of artificial intelligence.
Investors point out that India still need improved testing, packaging, and manufacturing capabilities to sustain large-scale semiconductor growth, despite the country’s increasing optimism. Nonetheless, both domestic and foreign investors are beginning to see the industry as a long-term strategic opportunity.
Source – The Economic Times
