Infineon to acquire C2i Semiconductors to boost AI capabilities
German semiconductor maker Infineon Technologies AG is acquiring C2i Semiconductors to strengthen its power management portfolio for AI data centers and expand its engineering capabilities in India.
Infineon Technologies AG, a German semiconductor manufacturer, has announced its acquisition of C2i Semiconductors, a startup previously backed by Peak XV Partners. The deal aims to bolster Infineon's power management portfolio for artificial intelligence (AI) data centers and expand the company's engineering expertise in India.
Financial terms of the transaction have not been disclosed, but the deal is anticipated to close in the third quarter of 2026. This acquisition represents a significant development for India's burgeoning semiconductor startup ecosystem, with a global chip major acquiring a two-year-old Indian company. It also highlights the growing strategic importance of semiconductor engineering talent based in India amidst rising global demand for AI infrastructure.
C2i, founded in 2024 and headquartered in Bengaluru, develops power management solutions for AI data centers and cloud infrastructure. The startup specializes in software-defined multiphase controllers and smart power stages, which regulate power supplied to processors. Its technology integrates power semiconductors with digital controls and software algorithms to optimize power conversion, regulation, and system performance in real-time.
Infineon stated that the acquisition will integrate C2i's expertise in intelligent digital power management, multiphase controllers, and system-level power architectures into its existing offerings. The transaction will combine C2i's digital power technology with Infineon's semiconductor portfolio, which includes silicon, silicon carbide, and gallium nitride technologies, alongside the German company's manufacturing capabilities and global customer base.
The deal occurs as the Indian government aims to enhance the country's semiconductor capabilities. This acquisition aligns with market projections anticipating substantial growth for India's semiconductor market by 2031. Infineon has previously signaled intentions to strengthen its India-based research and development network through such acquisitions.