India’s deep tech shift: AI, chips emerge as new focus

A leader at a major digital media group told the Economic Times Startup Awards 2026 that Indian founders are now prioritizing semiconductor chips, AI, robotics, and clean energy over the fintech and quick-commerce models that once dominated. The shift, they said, is driven by government backing and patient capital willing to wait for these companies to mature.

The observation aligns with recent funding trends. When we covered India’s Q3 2026 funding data on 7 October, Inc42 reported a 5% year-over-year rise to $2.2 billion, even as investors backed fewer startups. AI startups alone saw a 265% jump in funding during the same quarter, per Inc42’s 10 October report. Earlier, on 4 September, an Accel partner noted a move toward disciplined funding, with AI as a key driver.

The comments suggest the change is more than cyclical. The new focus on proprietary technology—semiconductors, robotics, and new materials—implies longer gestation periods and higher capital requirements. That could explain why investors are consolidating bets into fewer, larger rounds, a trend we highlighted on 8 September.

What remains unclear is whether this shift will sustain itself without continued government incentives or if the current funding environment can support the capital intensity these sectors demand. The next quarter’s data may offer early clues.

Sources: economictimes.indiatimes.com