Infineon to Acquire Indian AI Data Center Power Management Startup C2i Semiconductors
Infineon has announced the acquisition of Bengaluru-based startup C2i Semiconductors, which specializes in software-defined multiphase controllers and smart power stages for AI data centers. The transaction is expected to close in the third quarter of 2026. As AI processors demand increasingly high power density, software-defined power management is crucial for optimizing energy efficiency and reducing power loss in data centers. This acquisition strengthens Infineon's power management portfolio and expands its engineering footprint in India's growing tech hub. C2i Semiconductors was previously backed by prominent semiconductor investor and former Intel board member Lip-Bu Tan, who also served as an advisor. The startup's technology combines advanced power semiconductors, digital control, and software algorithms for real-time voltage regulation.
## BACKGROUND
Modern AI data centers require massive amounts of electricity, making efficient power delivery a critical bottleneck. Multiphase controllers and Smart Power Stages (SPS) are hardware components that integrate MOSFETs and drivers to manage high-current power delivery to processors. Software-defined power management (SDPM) enhances this hardware by using flexible, data-driven software to dynamically optimize power conversion and efficiency in real-time.