Infineon acquires Indian power systems firm C2i Semiconductors to bolster AI data center power portfolio

German semiconductor manufacturer Infineon Technologies has acquired C2i Semiconductors, a Bangalore-based company specializing in developing power-delivery architectures for large-scale AI data centers. The transaction is expected to close in the fourth quarter of this year, with financial terms remaining undisclosed.

The acquisition marks a strategic move by Infineon to expand its power semiconductor portfolio, adding capabilities in intelligent digital power management and system-level power architectures designed for vertical power delivery. According to the company, the deal also broadens its engineering footprint in India, where it already employs approximately 2,800 people.

C2i's technology is engineered to help power delivery systems respond to the rapidly shifting power demands of AI processors. It combines power semiconductors with digital control and software algorithms to manage conversion, regulation, and system performance in real time. Infineon said the acquisition will support more adaptive power architectures spanning from the grid to the processor core, a critical requirement as AI workloads continue to drive unprecedented volatility in power consumption at data center scale.

C2i, an acronym for control, conversion, and intelligence, was founded in 2024 by former power systems engineers from Texas Instruments. The company is developing a plug-and-play "grid-to-GPU" system designed to streamline how electricity flows from a facility's electrical bus to AI processors. In February, the startup raised $15 million in its Series A funding round, underscoring growing investor interest in power infrastructure solutions for AI.

"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. "C2i Semiconductors brings exceptional expertise in software-defined power management and system-level power architectures, backed by a proven highly experienced engineering team with decades of combined industry experience."

Ram Anant, founder and CEO of C2i Semiconductors, added: "We founded C2i Semiconductors with the vision of bringing greater intelligence to power delivery systems and addressing the growing power challenges of AI infrastructure. Joining Infineon gives us access to world-class semiconductor technologies, manufacturing capabilities, and global customer relationships."

The deal reflects a broader industry trend of semiconductor and power equipment makers moving to address the intensifying energy demands of AI data centers. Infineon has been increasing its focus on power infrastructure in recent years. In July, the company partnered with Korean electrical equipment manufacturer LS Electric to develop direct current power infrastructure for the AI data center market.

Infineon, one of Europe's largest semiconductor manufacturers, was spun out of Siemens in 1999 and specializes in power electronics, automotive microcontrollers, sensors, and security chips. The integration of C2i's software-defined power management expertise is expected to strengthen Infineon's position in the rapidly evolving AI infrastructure supply chain, where efficient power delivery from grid to processor has become a critical bottleneck for scaling next-generation data centers.