Infineon to Acquire C2i Semiconductors to Boost AI Power Chip Innovation in India

Infineon Technologies, a German semiconductor giant, will acquire C2i Semiconductors, a company based in Bengaluru. Its position in the market for AI data centre power management will be further solidified by this move. In addition, Infineon is enhancing its semiconductor R&D capacities in India.

In a release, Infineon stated that the deal, which was announced on August 24th, is anticipated to close in the third quarter of calendar year 2026. None of the financial details were made public. An AI server's high-performance GPUs and CPUs rely on "smart power stage" chips, which are being developed by a Bengaluru-based fabless chip startup that was founded in 2024 by ex-Texas Instruments employees. A big engineering challenge in modern data centres is efficiently delivering electricity, since GPUs consume vast amounts of power.

India’s Semiconductor Sector Alluring Global Players

The acquisition occurs months after C2i secured $16.7 million in funding from Peak XV Partners and other investors. Additionally, the approval of the Semicon 2.0 scheme by the Union Cabinet marks the beginning of a new phase for the Indian semiconductor ecosystem. An additional goal of this plan is to solidify India's position in the peripheral semiconductor ecosystem, which encompasses industrial gases, chemicals, and so on, in addition to luring investments in fabs and OSATs.

The startup had previously stated that it anticipated first silicon within months and was preparing to fabricate its first smart power-stage chip. The company had planned to tape out its second product, a controller for managing multiple power stages, in October and have it available for sampling to customers in early 2027. Ram Anant, the CEO and co-founder of C2i, had informed a media outlet that AI server boards are capable of accommodating dozens of power stages. He had observed one motherboard that contained 144 such stages across two GPUs.

How C2i can Benefit Infineon?

By acquiring C2i, Infineon gains knowledge in software-defined power management, multiphase controllers, and system-level architectures, such as SIVRs and vertical power delivery. This acquisition will further improve Infineon’s leadership in power solutions for AI data centres, according to Adam White, president of Infineon’s Power Systems division. In addition, it would establish a brand-new digital power technologies hub in India.

The purchase gives C2i access to Infineon's manufacturing capacity, semiconductor product line, and worldwide clientele. Anant stated that the acquisition will facilitate the rapid development of software-defined power systems and the expansion of the company's customer base globally. With a workforce of about 2,800 individuals, India is an important node in Infineon's worldwide research and development network. Anant stated that the founding principle of C2i Semiconductors was to solve the increasing power demands of AI infrastructure by making power delivery systems smarter. By being a part of Infineon, C2i gains access to first-rate semiconductor technology, production capacity, and international client connections.