German chip giant Infineon Technologies is set to acquire Bengaluru-based startup C2i Semiconductors, aiming to strengthen its position in AI power solutions and establish a new centre of excellence in India for digital power technologies, with the deal expected to close in 2026.
Infineon Technologies has agreed to buy Bengaluru-based C2i Semiconductors, a young chip design company focused on power-management systems for AI data centres. The German group said the transaction is expected to close in the third quarter of calendar year 2026, and it has not disclosed the price. According to Infineon, the deal is intended to deepen its position in AI power solutions and build a new centre of excellence for digital power technologies in India.
C2i works on software-defined multiphase controllers and smart power stages, hardware that sits in the power delivery chain feeding AI servers and high-performance computing systems. As processors become more power-hungry, the management of electricity has become a critical part of data-centre design. Evertiq reported that C2i’s platform also covers system-level power architectures, including vertical power delivery and substrate integrated voltage regulators, which complement Infineon’s existing silicon, silicon carbide and gallium nitride portfolio.
The startup was founded in June 2024 by six former Texas Instruments executives: Ram Anant, Vikram Gakhar, Preetam Tadeparthy, Dattatreya Suryanarayana, Harsha S B and Muthusubramanian N V. Tadeparthy served as chief technology officer. C2i said its chips and verification work were developed entirely in Bengaluru, with its first product due for tape-out in April 2026 and a second design planned later in the year. The company has said its approach could improve efficiency by 8 to 10 per cent and extend server life, claims that are particularly relevant as AI workloads place greater strain on power infrastructure.
The deal follows a rapid funding build-out. C2i raised $4 million in November 2024 from Yali Capital, with a personal investment from Lip-Bu Tan, before closing a $15 million Series A in February 2026 led by Peak XV Partners, with backing from Yali Deeptech and TDK Ventures. Peak XV later said the round was extended to $16.7 million, and Tracxn data put the company’s total funding at about $35.7 million when the acquisition was announced. The move has also drawn scrutiny online because C2i had received support under India’s Design Linked Incentive scheme. However, the scheme’s scale is modest compared with the startup’s private capital, and Infineon said the acquisition will expand its engineering base in India rather than reduce it. For policy makers, the deal is likely to sharpen the broader question of whether the aim is to nurture Indian chip intellectual property, Indian-headquartered chip firms, or both.
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