Bengaluru-based semiconductor startup C2i Semiconductors has raised $15 million in a funding round led by Peak XV Partners, with participation from Yali Deeptech and TDK Ventures.
This fresh capital follows a $4 million investment from Yali Capital in November 2024 and will help C2i expand internationally, set up a U.S. office to be closer to customers and decision-makers, and establish an applications and systems engineering team in Taiwan.
Building the Future of AI Data Center Power
Founded in June 2024 by Ram Anant, Vikram Gakhar, Preetam Tadeparthy, Dattatreya Suryanarayana, Harsha S B, and Muthusubramanian N V, C2i Semiconductors focuses on power management solutions for AI data centers and cloud infrastructure.
The company is targeting system-level innovations that rethink how power flows from the electrical grid to the processor core. This approach could improve efficiency and reduce energy costs for large-scale AI deployments, a growing challenge for hyperscale data centers.
Rapid Product Development: From Design to Silicon
C2i plans a fast-paced development cycle. The company’s first product is scheduled for tapeout in April 2026, followed by a second product in July.
Manufacturing plans include:
- First chip: fabricated at Tower Semiconductor in Israel
- Second chip: manufactured at GlobalFoundries, either in Singapore or Dallas
The startup’s “design-to-silicon” strategy reflects its goal of quickly moving from prototypes to mass production, critical in the rapidly evolving AI hardware market.
Expanding Globally
C2i’s funding round supports:
- Establishing a U.S. office to strengthen relationships with major AI and cloud customers
- Recruiting systems and applications engineers in Taiwan to drive next-generation chip development
- Scaling operations to support international expansion
By building a presence in key technology hubs, C2i aims to stay close to AI ecosystem leaders and accelerate adoption of its power management solutions.
Why Investors Are Excited
Investors are drawn to C2i’s potential for innovation in AI infrastructure, a market projected to grow rapidly as AI workloads surge.
Key factors attracting funding include:
- Deep technical expertise in semiconductor design and power management
- Early product tapeout plans and rapid time-to-market
- Focus on system-level innovations addressing real-world energy challenges in AI data centers
Participation from Peak XV, Yali Deeptech, and TDK Ventures highlights confidence in C2i’s ability to scale globally and compete in a competitive semiconductor landscape.
The Broader Market Opportunity
As AI models grow larger, energy consumption for data centers becomes a major bottleneck. Efficient power management chips like those developed by C2i are expected to reduce operational costs and improve performance.
Market research indicates significant demand for semiconductors that can optimize power distribution from the grid to AI processors, offering both energy efficiency and reliability — a key differentiator for cloud providers.
Looking Ahead
With $15 million in funding and a clear roadmap for product tapeouts and global expansion, C2i Semiconductors is positioning itself as a critical player in AI data center hardware.
The company’s focus on system-level power management could help solve one of the most pressing challenges in the AI infrastructure market, while its international strategy ensures proximity to customers and cutting-edge semiconductor expertise.
As the first chips reach production later this year, C2i’s performance will be closely watched by investors, customers, and the broader AI hardware community.
