C2i Semiconductors

Semiconductors · AI Infrastructure · Power Management

Acquisition

Infineon to acquire Peak XV-backed C2i Semiconductors for AI power chips

A two-year-old Bengaluru startup just became evidence that AI data centers are now the hottest battleground in chip M&A.

• Infineon Technologies announced it will acquire Bengaluru-based C2i Semiconductors to bolster its AI data center power management portfolio; financial terms were not disclosed.
• Founded in 2024 by Vikram Gakhar, Preetam Charan Anand Tadeparthy and Ramprasad Ananthaswamy, C2i builds software-defined multiphase controllers and smart power stages that regulate electricity before it reaches GPUs and CPUs in AI servers.
• The deal adds C2i's expertise in vertical power delivery, including Substrate Integrated Voltage Regulators, which feed electricity to AI chips through the substrate beneath them.
• C2i had raised $16.7 million from Peak XV Partners and other investors just months before the acquisition was announced.
• The transaction is expected to close in the third quarter of calendar year 2026, and Infineon plans to build a new center of excellence for digital power technologies in India from the deal.
• Increasingly power-hungry GPUs are straining data center electrical systems, pushing chipmakers to acquire specialized power-delivery startups rather than build the technology in-house.
• The deal signals that AI infrastructure's power bottleneck has become as strategically valuable as compute itself, and that India's young fabless chip startups are now credible acquisition targets for global semiconductor majors.