Bets are on for India’s semiconductor space amid growing M&As, investments | Tech News

As many as seven acquisitions were announced in 2026, reflecting interest from international chipmakers and domestic companies in India’s semiconductor capabilities. Five-year data from the Ministry of Corporate Affairs, Tracxn and industry estimates signal a maturing semiconductor ecosystem and rising investor confidence.

The launch of the ₹76,000-crore India Semiconductor Mission in 2021 sparked immediate interest, drawing $25.1 million to local startups that year. Momentum surged alongside key milestones — like Micron’s chip packaging plant in Sanand, Gujarat. Startups raised $153.7 million in 2023, $113.7 million in 2024 and $474 million in 2025, before adding another $228.7 million through early October this year.

The number of first-time investors in the semiconductor industry has followed a similar trajectory, jumping from 12 in 2021 to 80 in 2024, the year the Union Cabinet approved the Tata Group’s first chip fabrication unit in Dholera, Gujarat.

Two years later, in 2025, seed-stage investments rose to $33.4 million and early-stage investment grew to $79.4 million. Late-stage investment in Indian semiconductor startups more than tripled to $361 million in 2025.

“India is seeing the beginning of a massive semiconductor startup ecosystem, and the core reason is the talent, as 20 per cent of the global semiconductor designers are in India. Now, they’re being unleashed,” said Rajan Anandan, managing director of global venture capital firm Peak XV Partners.

“Why are they being unleashed? One, there is capital. Second, there is demand. India is really working on indigenising things like CCTVs and biometrics. So, that will create a big wave of opportunity,” he said.

Peak XV has invested in semiconductor startups Agrani Labs, C2i Semiconductors, InCore Semiconductors and Mindgrove. Semiconductor startups have also received academic support and funding from government-backed incubation centres.

The Foundation for Science Innovation and Development, an incubation centre of the Indian Institute of Science in Bengaluru, and the Indian Institute of Technology Madras have each participated in seed-stage funding for six semiconductor startups. Meanwhile, the Centre for Cellular and Molecular Platforms, an initiative of the Department of Biotechnology under the Ministry of Science and Technology, has backed five.

A similar trend is emerging in mergers and acquisitions (M&As). Among 3,557 companies in the semiconductor and allied sectors, 68 were acquired at a median price of $33.7 million. As many as 27 M&A deals were announced over the last five years — including seven in 2026 alone — where the median deal price jumped to $125 million.

One of the largest acquisitions in the Indian semiconductor industry in the last five years was that of Narayan Powertech, a 29-year-old Vadodara-based manufacturer of instrument transformers and related products. In 2024, New Hampshire–headquartered Standex acquired the company for $261.9 million.

“It is not just about big companies acquiring smaller companies or startups. Several startups working in the chip and semiconductor product space have also come together. We have also followed this philosophy: That it is better to join forces and work together than compete and divide the talent pool,” said Brijesh Kamani, founder and chief executive officer of deep-tech original design manufacturer Rapidise.

Rapidise has over the past 18 months acqui-hired SiBrain Technologies, an Ahmedabad-based company specialising in high-end chips and software intellectual properties, and MicroBin Corporation, a Chennai-based company focused on automotive instrument clusters.

Japan’s Renesas bought Bengaluru-headquartered Steradian Semiconductors for nearly $36 million in 2022. Founded in 2016, Steradian provides radar solutions that enable highly accurate object recognition and power efficiency in a small chip.

“Renesas plans to capitalise on the high growth opportunities the automotive radar market offers by expanding its automotive product portfolio with Steradian’s radar technology,” the company had said when announcing the acquisition.

Germany’s Infineon in August 2026 announced the acquisition of Bengaluru-based C2i Semiconductors, which specialises in software-defined multiphase controllers and smart power stages for AI data centre applications.

“This acquisition will further strengthen Infineon’s leadership in power solutions for AI data centres and create a new centre of excellence for digital power technologies in India,” Adam White, president of Infineon’s Power Systems division, had said at the time, adding that C2i brought exceptional expertise in software-defined power management and system-level power architectures, backed by a proven, highly experienced engineering team.

M&A activity over the past five years is not restricted to pure-play chip designers or printed circuit board firms; it now extends into companies focused on water recycling and power optimisation for silicon chips, experts noted.

There has also been a gradual shift towards intellectual property ownership in the Indian semiconductor ecosystem as startups move beyond design services to develop proprietary semiconductor products and technologies, said Sateesh Andra, managing partner at venture capital firm Endiya Partners.

“Government support given to semiconductor initiatives and manufacturing incentives is improving ecosystem infrastructure and investment visibility. More engineers with global semiconductor experience are now launching deep-tech ventures,” Andra said. 

Endiya Partners has invested in semiconductor startups, including Steradian Semiconductors, AlphaICs and Maieutic Semiconductors.