Infineon to acquire Bengaluru-based C2i Semiconductors to expand AI data center power business

Infineon's acquisition of C2i Semiconductors

Infineon Technologies AG announced on August 24 that it will acquire Bengaluru-based C2i Semiconductors, a fabless technology company founded in 2024 by veterans of Texas Instruments. C2i specializes in software-defined multiphase controllers and smart power stages used to regulate and convert electricity before it reaches high-performance GPUs and CPUs inside AI servers. Infineon said the transaction is expected to close in the third quarter of calendar year 2026, and financial terms were not disclosed.

Why C2i's power technology matters for AI data centers

C2i's portfolio targets power conversion, regulation and system performance for AI infrastructure. Its smart power stages are designed to deliver electricity efficiently to increasingly power-hungry GPUs, an engineering challenge that has grown as data center racks consume more energy. By combining C2i's digital power management with Infineon's silicon, silicon carbide and gallium nitride offerings, the German chipmaker aims to expand its so-called grid-to-core power delivery architectures for AI servers and high-performance computing platforms.

Leadership and strategic rationale

Adam White, president of Infineon's Power Systems division, framed the deal as a way to "further strengthen Infineon's leadership in power solutions for AI data centres and create a new centre of excellence for digital power technologies in India." C2i founder and CEO Ram Anant said joining Infineon gives the startup access to "world-class semiconductor technologies, manufacturing capabilities, and global customer relationships," reflecting a focus on scaling software-defined power management for next-generation data centers, including future work on technologies such as Substrate Integrated Voltage Regulators.

India as a growing R&D hub for Infineon

The acquisition expands Infineon's research and development footprint in India, where the company already employs about 2,800 people. C2i's Bengaluru team will be integrated into Infineon's broader India operations, supporting software-defined power management and system-level power architecture work. The deal follows C2i's earlier fundraising, in which the startup raised $16.7 million from Peak XV Partners and other investors, and comes as Infineon continues to broaden its semiconductor engineering presence in the country.

What remains undisclosed

Infineon has not disclosed the financial terms of the acquisition, the size of the teams being integrated, or specific product roadmaps tied to the deal. The expected close in Q3 2026 is the most concrete milestone publicly available; further details on integration plans and product timelines were not provided in the August 24 announcement.