Infineon to acquire Bengaluru AI chip startup C2i Semiconductors

The acquisition will strengthen Infineon’s power-management portfolio for AI data centres while expanding its digital power capabilities and semiconductor research footprint in India. The deal is expected to close in Q3 2026.

German semiconductor company Infineon Technologies is set to acquire Bengaluru-based fabless chip startup C2i Semiconductors, in a move aimed at strengthening its capabilities in power management for artificial intelligence data centres.

Infineon announced the transaction on August 24, saying the acquisition is expected to be completed during the third quarter of calendar year 2026. The company did not disclose the financial terms of the agreement.

Founded in 2024 by former Texas Instruments executives, C2i is developing semiconductor solutions designed to improve how power is delivered to high-performance processors used in AI servers. Its technology focuses on smart power-stage chips, which regulate and convert electrical power before it reaches GPUs and CPUs.

Focus on AI data centre power efficiency

The acquisition comes as power consumption becomes a growing challenge for data centre operators deploying increasingly powerful AI computing systems. High-performance GPUs require significant amounts of electricity, making efficient power delivery important for reducing energy use as well as the heat generated inside server infrastructure.

C2i has been developing its first smart power-stage chip and was preparing it for fabrication. The startup also planned a second product, a controller capable of managing multiple power stages, with a tape-out targeted for October and customer sampling expected in early 2027.

According to C2i CEO and co-founder Ram Anant, AI server boards can contain dozens of power stages. He has previously noted that one motherboard examined by the company featured 144 power stages across two GPUs.

The startup has also estimated that improving power-stage efficiency by even 0.5% to 1% could save around 100 to 150 watts per server board. Such gains could help lower overall electricity consumption while reducing the cooling requirements of dense AI computing systems.

Acquisition expands India R&D capabilities

Infineon said C2i will bring expertise in software-defined power management, multiphase controllers and system-level architectures. These include vertical power delivery and Substrate Integrated Voltage Regulators, or SIVR, technologies that can support next-generation computing platforms.

“This acquisition will further strengthen Infineon's leadership in power solutions for AI data centers and create a new center of excellence for digital power technologies in India,” said Adam White, president of Infineon's Power Systems division.

For C2i, becoming part of Infineon will provide access to the German company’s manufacturing capabilities, broader semiconductor portfolio and international customer base. Ram Anant said the transaction would help accelerate the startup’s development of software-defined power architectures and expand the reach of its technology globally.

The deal follows C2i’s $16.7 million funding round led by Peak XV Partners and other investors. It also comes as India seeks to deepen its semiconductor ecosystem through initiatives such as the government’s Semicon 2.0 programme, which targets investments across chip manufacturing and supporting semiconductor industries.

Infineon already has a significant presence in India, employing around 2,800 people. The acquisition of C2i is expected to further strengthen the country’s role in the company’s global research and development network.