Infineon To Acquire Peak XV-Backed C2i Semiconductors To Bolster AI Play

German semiconductor major Infineon Technologies AG is acquiring Peak XV Partners-backed C2i Semiconductors to strengthen its power management portfolio for AI data centres and expand its engineering capabilities in India. 

The companies did not disclose the financial terms of the transaction, which is expected to close in the third quarter of calendar year 2026.

The acquisition marks a notable development for India’s nascent but rapidly growing semiconductor startup ecosystem, with a global chip major buying a two-year-old, Indian startup. It also highlights the growing strategic importance of India-based semiconductor engineering talent amid rising global demand for AI infrastructure. 

Founded in 2024 by Vikram Gakhar, Preetam Charan Anand Tadeparthy, and Ramprasad Ananthaswamy, Bengaluru-based C2i builds power management solutions for AI data centres and cloud infrastructure. 

The startup specialises in software-defined multiphase controllers and smart power stages, which regulate the power supplied to processors. Its software-defined power technology combines power semiconductors with digital controls and software algorithms to optimise power conversion, regulation, and system performance in real time. 

As increasingly powerful AI processors create rapidly changing power demands, such systems can respond to sudden fluctuations while reducing power losses and maintaining system stability.

Infineon said the acquisition would add C2i’s expertise in intelligent digital power management, multiphase controllers, and system-level power architectures to its existing portfolio.

It will also expand Infineon’s capabilities in vertical power delivery, including technologies such as Substrate Integrated Voltage Regulators. Vertical power delivery is an emerging architecture that supplies electricity to AI processors through the substrate beneath them, reducing the distance the power must travel and limiting energy losses.

“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.

The transaction will combine C2i’s digital power technology with Infineon’s semiconductor portfolio spanning silicon, silicon carbide, and gallium nitride technologies, along with the German company’s manufacturing capabilities and global customer base. 

Infineon, which develops power systems, automotive chips, microcontrollers, and IoT solutions, employs around 2,800 people in India. It said the acquisition would add specialised software-defined power management expertise to its global R&D network and strengthen its innovation capabilities in the country. 

Earlier this year, C2i closed its Series A round at $16.7 Mn (about ₹160.5 Cr) after raising additional capital from TDK Ventures. The round was led by Peak XV Partners and also saw participation from existing backer Yali Capital. 

The deal comes as the Indian government looks to deepen the country’s semiconductor capabilities. Last month, the Union Cabinet cleared the second phase of the Indian Semiconductor Mission, Semicon 2.0, with an outlay of ₹1.28 Lakh Cr to strengthen India’s chip design and manufacturing ecosystem. 

According to Inc42’s India’s Semiconductor Uprising Report 2026, the country’s semiconductor market is expected to become a $155 Bn opportunity by 2031, up from $62 Bn in 2026, on the back of strong policy support and geopolitical shift.

The post Infineon To Acquire Peak XV-Backed C2i Semiconductors To Bolster AI Play appeared first on Inc42 Media.