New Delhi, Aug. 16 -- India's semiconductor startups have cleared the design stage with government support and seed funding, but few are securing the much larger investments needed to move from initial chip production to commercial-scale manufacturing.

Indian semiconductor and physical-AI companies, which develop AI-powered machines and robots, raised $523.3 million across 44 deals in 2025, up from $114.4 million across 48 deals in 2024, according to Tracxn data reviewed by Mint. They raised another $193.3 million across 26 deals through 10 August this year.

The Tracxn data shows that the funding funnel narrows after seed. From 2023 through 2026 so far, the sector recorded 94 seed and angel deals against just 20 Series A deals. Seed and...