Deeptech startup C2i Semiconductors has extended its Series A funding round to $16.7 million with fresh participation from TDK Ventures, strengthening investor interest in India’s semiconductor and AI infrastructure ecosystem.
The venture will be used to fast-track product development, build engineering capabilities, and scale global partnerships as part of its operations. The recent raise follows C2i's previous $15 million financing round led by Peak XV Partners, with Yali Deeptech and other investors participating.
C2i Semiconductors is involved in the fast-growing sector of power delivery and energy optimization in AI-powered computing infrastructure. With the increasing number of AI workloads worldwide, data centers are under greater pressure to be power-efficient in delivering processing power to high-performance processors.
The new venture seeks to change the way power flows from the grid to processor cores, a shift that is becoming increasingly important as more AI-powered technologies emerge in the market.
Industry observers believe the next few years could offer better opportunities for semiconductor companies focused on power-efficient computing infrastructure.
TDK Ventures’ participation signals growing confidence in India’s deeptech and semiconductor ecosystem. Foreign investors have become increasingly interested in firms developing basic technology that can support applications such as artificial intelligence and edge computing through advanced electronic designs.
In addition, the leadership team at C2i has created the image of a systems-based technology firm rather than a semiconductor maker. It targets efficiency issues in computing environments rather than making independent semiconductors.
C2i also enjoys strategic investment ties associated with Intel's leadership structure.
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At a time when India is aggressively pursuing homegrown semiconductor production and design, venture funds have been attracted by government incentives to develop semiconductors. Because of the current hype around artificial intelligence, semiconductor infrastructure has emerged as a lucrative investment area for start-ups and investors.
Despite their heavy dependence on imported semiconductors, firms like C2i have built specialized plants for manufacturing semiconductors geared towards power management, semiconductor designing, and artificial intelligence.
An increase in venture funding in the sector is expected as the AI compute infrastructure market grows.