German firm Infineon Technologies is acquiring Bengaluru-based company C2i Semiconductors to bolster its capabilities in power management for artificial intelligence-driven data centers. The deal is expected to close in the third quarter of 2026 under standard terms; financial details were not disclosed.
This acquisition integrates C2i's expertise in software-defined power management, multi-phase controllers, and power system architectures into Infineon's larger semiconductor portfolio. A multi-phase controller coordinates multiple energy conversion stages to ensure high current with fast response, while software-defined power uses digital control to adapt power delivery based on changing operating conditions.
The significance of this technology is directly linked to the rapid growth of AI computing power. The International Energy Agency estimates that data centers consumed about 415 TWh of electricity globally in 2024, accounting for approximately 1.5% of global consumption. Under the baseline scenario, this figure, largely driven by AI, could more than double to 945 TWh by 2030. Accelerated servers, which are predominantly used for AI tasks, are expected to account for nearly half of the net increase in data center electricity consumption during this period.
Thus, for Infineon, this acquisition fits into broader efforts to solve power delivery challenges across the entire data center system, rather than viewing it as a collection of discrete components.
Adam White, President of Infineon's Power Systems division, stated that this acquisition will further strengthen Infineon's leadership in AI data center solutions and create a new center of excellence for digital power technologies in India. He added that C2i's expertise will help accelerate work on next-generation vertical power delivery architectures.
Vertical power delivery is an evolving approach where voltage regulation is physically moved closer to the processor. This allows for shorter electrical paths and helps manage the high current and rapid load changes characteristic of modern AI accelerators. Infineon reported that this merger can advance the development of System-in-Voltage Regulators (SIVR), which integrate voltage regulation more closely with the processor package.
These developments occur against a backdrop of a wider shift in data center architecture. NVIDIA is actively promoting the distribution of 800V DC for future AI infrastructure, noting that higher distribution voltages can reduce current, cable requirements, and conversion losses. In August, NVIDIA announced that it is developing this architecture jointly with Google, Microsoft, and the Open Compute Project.
Infineon is also expanding its own portfolio. In June, the company announced server power designs supporting 18 kW and 30 kW power levels for high-voltage AI data center architectures. Earlier this year, it introduced new digital multi-phase controllers and a high-current density power module designed for next-generation AI processors.
C2i is a young company by semiconductor industry standards. It was founded in Bengaluru in 2024 by a team of semiconductor veterans and raised $15 million in a Series A funding round in February 2026. The company focused its activities on power management technologies for AI servers and cloud infrastructure.
Infineon noted that it has about 2,800 employees in India and plans to leverage this acquisition to strengthen the country as a hub for R&D in digital power technologies. This aligns with India's broader efforts to develop domestic capabilities in semiconductor design and manufacturing through initiatives such as the India Semiconductor Mission and the design-linked incentive scheme.
Ram Anand, Founder and CEO of C2i, stated that joining Infineon provides the company with access to advanced semiconductor technologies, manufacturing capabilities, and global customer relationships.