IN Brief:
- C2i develops software-defined multiphase controllers and smart power stages for AI computing systems.
- Infineon will combine C2i's control expertise with its silicon, SiC, and GaN power technologies.
- The transaction is expected to close during the third quarter of calendar 2026.
Infineon Technologies is acquiring Bangalore-based C2i Semiconductors to strengthen the digital control and system architecture behind power delivery for AI processors and high-performance computing systems.
C2i develops software-defined multiphase controllers, smart power stages, and system-level power architectures for AI data centres. The transaction is expected to close during the third quarter of calendar 2026 and will add the company’s engineering team to Infineon’s Power Systems activities.
The acquisition extends Infineon’s position beyond the switching devices themselves. C2i’s work centres on coordinating multiphase conversion stages and developing architectures for increasingly dense processor power delivery, including vertical approaches and future substrate-integrated voltage regulators.
Power delivery has become a more difficult design constraint as AI accelerators draw higher currents and impose rapid changes in load. Voltage regulators have to react quickly enough to maintain supply stability while limiting conversion losses, heat generation, and the amount of board area consumed by inductors, capacitors, controllers, and switching stages.
Infineon already supplies silicon, silicon carbide, and gallium nitride devices across the power-conversion chain. Adding C2i gives it a stronger digital-control layer around that hardware, allowing device selection, power-stage design, control algorithms, and system architecture to be developed more closely together.
Adam White, president of Infineon’s Power Systems division, said: “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.”
The deal follows a period of rapid growth in Infineon’s AI power business. AI data-centre demand helped lift the company to record quarterly revenue in its third fiscal quarter of 2026, with Power & Sensor Systems producing the largest sequential increase.
Infineon reported quarterly revenue of €4.172 billion for the three months to 30 June and identified power-supply products for AI servers and data centres as its most important growth driver. The company has also disclosed multi-year capacity reservation agreements, either concluded or under negotiation, representing a cumulative revenue volume in the high single-digit billions of euros.
Those commitments put more pressure on power architecture as well as semiconductor capacity. A conventional server power chain can include conversion from the incoming supply through rack distribution, intermediate buses, board-level converters, and finally the point-of-load stages feeding the processor. At higher rack densities, small efficiency losses at each stage translate into substantial additional heat and electrical demand.
Moving the final conversion stage closer to the processor can reduce distribution losses and parasitic effects, but it places severe constraints on package size, thermal management, transient response, and control. Vertical power delivery goes further by bringing power through or beneath the processor substrate rather than routing all high-current connections laterally across a board.
C2i’s controller technology is aimed at this part of the system. Software-defined control gives designers scope to adjust multiphase behaviour through algorithms and system telemetry, although switching-device characteristics, magnetics, layout, cooling, and the processor’s own power-delivery network continue to determine the physical limits.
Infineon has already been extending its portfolio towards integrated modules and higher-voltage rack architectures. The C2i purchase adds expertise at the opposite end of the chain, closer to the processor, where voltage tolerance narrows while current density rises.
The transaction will also expand Infineon’s engineering footprint in India, where it currently employs about 2,800 people. Bangalore will become another centre for digital power development as C2i’s engineers are integrated into the wider organisation.
Closing the acquisition will not, by itself, solve the power constraints emerging around increasingly dense AI hardware. It does give Infineon another part of the design stack — digital control and processor-facing architecture — alongside the semiconductor technologies it already supplies from the grid connection towards the compute board.
