Bengaluru-based startup C2i Semiconductors has reached a big milestone by successfully taping out its first smart power stage chip made for artificial intelligence (AI) infrastructure. Along with this, the company has also extended its Series A funding round to $16.7 million with support from investors like TDK Ventures and Peak XV Partners.
This achievement is being seen as an important step for India’s growing semiconductor industry, especially as AI data centres around the world are facing rising power and cooling challenges.
First AI Power Chip Designed Fully in India
Founded in 2024, C2i Semiconductors has developed its first chip completely through its in-house engineering team in India. In the semiconductor industry, “tape-out” is the final stage of chip design before the manufacturing process starts at a foundry.
The company said the chip has been specially built for AI infrastructure and next-generation data centres. The entire chip design, architecture, and verification work was done in India.
C2i Semiconductors was founded by former Texas Instruments executives, including CEO Ram Anant and CTO Preetam Tadeparthy. Other co-founders are Vikram Gakhar, Dattatreya Suryanarayana, Harsha S. B, and Muthusubramanian N.V.
Together, the founding team brings more than 100 years of semiconductor experience and holds over 100 US patents.
Solving the Growing Power Problem in AI Data Centres
As AI technology grows, data centres are using more electricity than ever before. Future AI processors are expected to need much higher power to handle advanced workloads.
Industry reports suggest that by 2030, AI processors may require peak currents of up to 6,000A. Upcoming AI chips are also expected to consume much more power compared to current GPUs. For example, future “Feynman” chips could require around 4,500W of power, while Nvidia’s H100 GPU currently uses about 700W.
This increase in power demand creates major heating and efficiency problems inside AI servers and data centres.
To solve this issue, C2i has created a software-defined Voltage Regulator (VR) platform using a “grid-to-core” architecture. The company claims its technology can provide more than 96% power conversion efficiency.
C2i also said its solution can help processors run up to 4 degrees Celsius cooler. Lower temperatures can improve hardware performance and increase the lifespan of AI systems.
According to the startup, a 100 MW AI data centre using its technology could save nearly $12 million every year in energy costs.
Funding Round Extended With Global Investor Support
At the same time, C2i Semiconductors announced that it has extended its Series A funding round to $16.7 million. TDK Ventures joined the latest funding extension after already participating in the earlier round.
Peak XV Partners, formerly known as Sequoia Capital India & Southeast Asia, also invested in the company earlier.
So far, the startup has raised around ₹170 crore in total funding.
In November 2024, C2i raised $4 million in a funding round led by Yali Capital. Intel CEO Lip-Bu Tan also backed the company during that round.
Later, in February 2026, the startup secured $15 million in the first part of its Series A funding led by Peak XV Partners. At that time, it became one of the largest funding rounds raised by an Indian semiconductor startup.
The company plans to use the fresh funds for product development and global expansion.
Manufacturing and Expansion Plans
While the chip designs are being developed fully in India, manufacturing will happen through international foundries. C2i plans to manufacture its chips at Tower Semiconductor in Israel and GlobalFoundries facilities in Singapore or Dallas.
The startup also plans to open a US office to stay closer to customers and business partners in the AI industry. In the future, it aims to build an applications and systems engineering team in Taiwan as part of its expansion plans.
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Currently, the company is still in the pre-revenue stage because its products are under development and manufacturing. The founders expect meaningful revenue growth to begin by late 2027 and improve further in 2028.
Big Step for India’s Semiconductor Industry
C2i Semiconductors is being seen as an important example of India’s growing ambitions in semiconductor technology. The startup represents a shift from India mainly offering chip design services to building original semiconductor products for global markets.
The company is also receiving support under the Indian government’s Design Linked Incentive (DLI) Scheme. It plans to work closely with the government under the India Semiconductor Mission (ISM) 2.0 framework as well.
Going forward, C2i plans to build more semiconductor products focused completely on AI infrastructure, a market expected to grow rapidly over the next few years.