German semiconductor major Infineon Technologies is acquiring Bengaluru-based C2i Semiconductors as it looks to strengthen its power management technology for AI data centres. The financial terms of the transaction have not been disclosed, and the deal is expected to close in the third quarter of 2026.
Founded in 2024 by Vikram Gakhar, Preetam Charan Anand Tadeparthy and Ramprasad Ananthaswamy, C2i develops power management solutions for AI data centres and cloud infrastructure. Its technology includes software-defined multiphase controllers and smart power stages that help regulate electricity supplied to high-performance processors.
The technology is becoming increasingly important as AI chips demand more power and experience rapid fluctuations in electricity consumption. C2i’s systems combine semiconductors, digital controls and software algorithms to adjust power delivery in real time, helping reduce losses while maintaining stable performance. Infineon plans to integrate this capability with its existing silicon, silicon carbide and gallium nitride portfolio.
The acquisition will also deepen Infineon’s engineering presence in India. The company already employs around 2,800 people in the country and plans to build a new centre of excellence for digital power technologies around C2i’s team. Earlier this year, the startup closed its Series A round at $16.7 million, led by Peak XV Partners with participation from TDK Ventures and Yali Capital.
For India’s semiconductor ecosystem, the transaction is notable beyond C2i itself. A global chipmaker acquiring a two-year-old Indian semiconductor startup highlights the growing strategic value of local chip-design and engineering talent. With AI infrastructure driving demand for more efficient power systems, C2i’s acquisition shows that opportunities in the AI economy are expanding beyond processors themselves to the critical technology that keeps them running.
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