Germany’s Infineon is acquiring Bengaluru’s C2i Semiconductors

German company Infineon Technologies is acquiring Bengaluru-based C2i Semiconductors as it seeks to strengthen its capabilities in power management for AI data centres. The transaction is expected to close in the third quarter of 2026, subject to customary conditions. Financial terms were not disclosed.

The deal brings C2i’s expertise in software-defined power management, multiphase controllers and system-level power architectures into Infineon’s much larger semiconductor portfolio. A multiphase controller coordinates several power-conversion stages to deliver high currents with fast response, while software-defined power uses digital control to adjust power delivery as operating conditions change.

The importance of that capability is tied directly to the rapid expansion of AI computing. The International Energy Agency estimates that data centres consumed about 415 TWh of electricity globally in 2024, around 1.5% of worldwide electricity use. In its base case, that figure is projected to more than double to about 945 TWh by 2030, with AI a major driver. Accelerated servers, which are predominantly used for AI workloads, are expected to account for almost half of the net increase in data-centre electricity consumption over the period.

For Infineon, the acquisition therefore fits into a broader effort to address power delivery across the data-centre system instead of treating it as a collection of separate components.

“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,” Adam White, President of Infineon’s Power Systems division, said, adding that C2i’s expertise would help accelerate work on next-generation vertical power delivery architectures.

Vertical power delivery is an emerging approach in which voltage regulation is moved physically closer to the processor. This can shorten electrical paths and help deal with the high current and rapid load changes associated with modern AI accelerators.

Infineon said the combination could advance work on Substrate Integrated Voltage Regulators (SIVRs), which integrate voltage regulation more closely with the processor package.

The development comes amid a wider shift in data-centre architecture. NVIDIA has been promoting 800 VDC (800-volt direct-current distribution), for future AI infrastructure, noting that higher-voltage distribution can reduce current, cabling requirements and conversion losses. NVIDIA said in August that it has been developing the architecture with Google, Microsoft and the Open Compute Project.

Infineon has also been expanding its own portfolio. In June, it announced server power designs supporting 18 kW and 30 kW power levels for high-voltage AI data-centre architectures. Earlier in the year it introduced new digital multiphase controllers and a high-current-density power module aimed at next-generation AI processors.

C2i is a young company by semiconductor industry standards. Incorporated in Bengaluru in 2024, it was founded by a team of semiconductor veterans and raised $15 million in Series A funding in February 2026. It has focused on power-management technologies for AI servers and cloud infrastructure.

Infineon said it has around 2,800 employees in India and plans to use the acquisition to strengthen the country as an R&D base for digital power technology. That aligns with India’s wider push to build domestic semiconductor design and manufacturing capabilities through initiatives including the India Semiconductor Mission and its Design Linked Incentive scheme.

“Joining Infineon gives us access to world-class semiconductor technologies, manufacturing capabilities, and global customer relationships,” C2i founder and CEO Ram Anant said.