German semiconductor major Infineon Technologies has announced the acquisition of Bengaluru-based C2i Semiconductors as part of its strategic expansion in AI data centre solutions. The transaction is expected to close in the third quarter of calendar year 2026, with financial terms not disclosed. According to the company press release, this acquisition will create a new center of excellence for digital power technologies in India and further strengthen Infineon's leadership in power solutions for AI data centres. The deal follows Infineon's recent ₹750 crore lease of 632,000 square feet office space in Bengaluru's Whitefield for AI R&D operations. As per Infineon, the acquisition will expand the company's engineering capabilities in India and further strengthen the country's role in its global R&D network.
C2i Semiconductors specialises in software-defined multiphase controllers and smart power stages used in AI data centre applications, helping manage power delivery for AI servers and high-performance computing platforms. According to Infineon, the company's technology complements Infineon's existing power semiconductor portfolio, which includes silicon, silicon carbide and gallium nitride technologies. Adam White, President of Infineon's Power Systems division, stated that the acquisition will "further strengthen Infineon's leadership in power solutions for AI data centres" and create a new centre of excellence for digital power technologies in India. The company's system-level approach covers power delivery from the grid to the core and enables more adaptive power architectures for AI infrastructure. As reported by Infineon, C2i's technology will complement the company's portfolio of power semiconductors and power systems, enabling power delivery architectures from the grid to the core for AI infrastructure.
The acquisition will accelerate development of software-defined power architectures that combine power semiconductors with digital control and software algorithms to optimise power conversion, regulation and system performance in real time. Infineon noted that C2i's expertise in intelligent digital power management, multiphase controllers and system-level power architectures, particularly for vertical power delivery, including Substrate Integrated Voltage Regulators (SIVR), will be crucial for next-generation applications. The companies will work on next-generation vertical power delivery architectures and future SIVR solutions, expanding their capabilities in AI infrastructure power management. According to Infineon, this integration will allow the companies to take C2i's technologies to customers worldwide, leveraging Infineon's global scale and application know-how.
Infineon has paid a security deposit of ₹33.36 crore for its office lease and the deal includes a rent-free period of eight months, with the lease scheduled to start on December 1, 2026. The lease deed shows the rent will escalate by 15 per cent every three years. The company's global operations include around 57,000 employees at the end of September 2025 and reported revenue of about 14.7 billion euros in fiscal year 2025. This transaction follows Infineon's recent acquisition of C2i Semiconductors, strengthening its position in power management for artificial intelligence data centres.
The acquisition and office lease demonstrate Infineon's commitment to India's evolving role as a primary global research and development and AI engineering powerhouse. According to Propstack, Raja Seetharaman commented that the massive commitment underscores India's evolving role from a regional delivery hub to a primary global research and development powerhouse. The transaction follows recent large leases in Bengaluru, such as the India arm of American retail giant Target Corporation, which leased over 830,000 square feet for ₹1,250 crore in June this year. As reported by JLL, India's office leasing recorded a modest 3.9 per cent year-on-year decline, with 37.9 million square feet leased in H1 2026, while Bengaluru retained its position as the leading office market with 9.37 million square feet leased.
