Acquisitions and investment are accelerating across India’s semiconductor sector as global chipmakers and domestic groups compete for specialist technology and capacity serving AI data centres.
India’s semiconductor industry is moving from aspiration to transaction. According to The Economic Times, mergers, acquisitions and fresh capital are rising quickly across the sector, as both overseas chipmakers and domestic groups position themselves for demand linked to artificial intelligence data centres and wider electronics manufacturing.
The article says seven acquisitions were announced in 2026, taking the total number of disclosed M&A deals over the past five years to 27. Across a universe of 3,557 companies in the semiconductor and related sectors, 68 firms were acquired at a median price of $33.7 million, while the median transaction value in the wider deal set climbed to $125 million, suggesting that buyers are now paying more for strategic assets and specialist capability.
This acceleration has coincided with a larger policy push. The government’s ₹76,000-crore India Semiconductor Mission, launched in 2021, helped trigger early interest from investors, with local startups raising $25.1 million that year. Momentum later strengthened after milestones such as Micron’s chip packaging plant in Sanand, Gujarat, and the Union Cabinet’s approval of Tata Group’s first chip fabrication unit in Dholera, also in Gujarat.
Funding data cited in the report shows a sharp rise in capital flows. Semiconductor startups in India raised $153.7 million in 2023, $113.7 million in 2024 and $474 million in 2025, before adding another $228.7 million by early October this year. Seed-stage investment increased from $14.4 million in 2023 to $33.4 million in 2025, while late-stage funding more than tripled to $361 million over the same period.
Investor participation has widened as well. The number of first-time backers in the sector rose from 12 in 2021 to 80 in 2024, indicating that the market is drawing in a broader pool of capital rather than relying on a small group of specialists. Rajan Anandan, managing director of Peak XV Partners, told the publication that India is at the start of a large semiconductor startup ecosystem, arguing that the country’s engineering base gives it a structural advantage because about 20% of the world’s semiconductor designers are in India.
Deal activity is also being shaped by the needs of AI infrastructure. One of the largest recent transactions was New Hampshire-based Standex’s $261.9 million acquisition of Vadodara manufacturer Narayan Powertech in 2024. Another notable deal was Renesas’s purchase of Bengaluru-based Steradian Semiconductors in 2022 for nearly $36 million. More recently, Germany’s Infineon said in August 2026 that it would acquire Bengaluru-based C2i Semiconductors, a company focused on software-defined multiphase controllers and smart power stages for AI data centre applications. Infineon’s Power Systems division president, Adam White, said the deal would strengthen the company’s position in power solutions for AI data centres and create a new centre of excellence for digital power technologies in India.
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