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 Q4 of this year. Financial terms were not disclosed.

According to Infineon, the deal will expand its power semiconductor portfolio, adding capabilities in intelligent digital power management and system-level power architectures for vertical power delivery.

The deal also expands the company’s engineering footprint in the Indian market, where it already employs approximately 2,800 people.

C2i’s technology is designed to help power delivery systems respond to the rapidly shifting power demands of AI processors, combining power semiconductors with digital control and software algorithms to manage conversion, regulation, and system performance in real time. Infineon claims that the acquisition will support more adaptive power architectures spanning from the grid to the processor core.

C2i, short for control, conversion, and intelligence, was founded in 2024 by former power systems engineers from Texas Instruments. The company is developing what it calls 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 company raised $15 million in its Series A funding round.

“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.”

“We founded C2i Semiconductors with the vision of bringing greater intelligence to power delivery systems and addressing the growing power challenges of AI infrastructure,” added Ram Anant, founder and CEO of C2i Semiconductors.

“Joining Infineon gives us access to world-class semiconductor technologies, manufacturing capabilities, and global customer relationships.”

Infineon has upped its investment and focus on power infrastructure over recent years. In July, the firm partnered with Korean electrical equipment manufacturer LS Electric to develop direct current power infrastructure for the AI data center market.

Infineon is one of Europe’s largest semiconductor manufacturers. Spun out of Siemens in 1999, the company specializes in power electronics, automotive microcontrollers, sensors, and security chips.