Indian Semiconductor Startups Raise $206 Million Since 2022

Indian semiconductor startups have raised approximately $206 million across 51 funding rounds since 2022, according to the Indian Semiconductor Startup Landscape 2026 report. Investment is becoming more concentrated, with $61.9 million raised in the first half of 2026 alone, a figure that nearly matches the total funding for the entire previous year.

Speciale Invest and the Startup Policy Forum report a strong synergy between public and private capital. The government's Design Linked Incentive (DLI) programme has acted as a catalyst, with 14 of 24 government-supported projects subsequently attracting $100.8 million in institutional venture capital. Four companies—C2i Semiconductors, NetraSemi, Morphing Machines, and Mindgrove Technologies—account for 56% of the private capital raised by DLI-backed firms.

The sector is also diversifying its technical focus. While early ventures concentrated on digital and edge System-on-Chips (SoCs), newer startups are expanding into AI data-center silicon, photonics, and power semiconductors. The current challenge for the industry is transitioning from the design and validation phase into scaled products and globally relevant business models.