German chipmaker Infineon Technologies has completed its acquisition of Bengaluru-based C2i Semiconductors, adding digital power-management expertise aimed at artificial intelligence data centers and high-performance computing systems.
Infineon said in an October 5 announcement that C2i’s team has joined its Power Systems division. The company did not disclose the purchase price or other financial terms.
Deal brings digital power expertise into Infineon
C2i develops software-defined multiphase controllers, smart power stages, digital control technologies and system-level power architectures. Infineon said those capabilities complement its portfolio of silicon, silicon carbide and gallium nitride power semiconductors.
The acquisition is intended to strengthen Infineon’s ability to design power-delivery systems spanning the path from the electricity grid to AI processors. That includes work on vertical power delivery and future substrate integrated voltage regulators, which move voltage regulation closer to high-performance chips.
Bringing regulation closer to a processor can shorten the electrical path and support higher power density, although the performance of any resulting product will depend on its final design and deployment. Infineon did not specify which C2i technologies are already in production or whether any have entered customer qualification.
C2i’s engineers will become part of Infineon’s Power Systems division. Infineon said the combination brings together the startup’s digital control expertise with the larger company’s semiconductor manufacturing, applications engineering and global customer reach.
The transaction was first announced on August 24, when Infineon said it expected the deal to close during the third quarter of calendar 2026. The October announcement confirms that the acquisition has been completed.
AI servers put new pressure on power delivery
Power delivery has become a larger design constraint as AI accelerators use more electricity and produce rapidly changing loads. Infineon said software-defined power systems combine power semiconductors with digital controls and algorithms that adjust conversion and regulation in real time.
According to the company, this approach can help power systems respond more quickly to sudden changes in processor demand while reducing losses and maintaining system stability. The technical benefits remain company claims, and Infineon did not identify customers, commercial deployments or product-release dates tied to the acquisition.
Infineon is positioning the deal as part of a broader push into AI infrastructure. Its existing portfolio covers several stages of data center power conversion, while C2i adds controller and system-architecture capabilities that can coordinate those components.
India R&D footprint expands
The acquisition also increases Infineon’s engineering presence in India. The company said it employs about 2,800 people across multiple Indian locations and described Bengaluru as an important center for digital power technology.
Infineon did not disclose how many C2i employees are joining the group in its completion announcement or whether the startup will continue to operate under its own brand. It said only that the C2i team is becoming part of the Power Systems division and will contribute to the development of next-generation AI infrastructure power products.
The transaction comes as India seeks to expand its role across semiconductor design, manufacturing, assembly and research. C2i’s focus on power-control technology places the acquisition on the design and systems side of that effort rather than in chip fabrication.
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