DLI-Backed Chip Startup Draws Big Funding as India’s Design Power Grows
India’s semiconductor chip design ecosystem is gaining strong momentum, with startups supported under the Design Linked Incentive (DLI) Scheme attracting growing attention from global investors. One such company, C2i Semiconductors, has emerged as a strong example of how targeted policy support and deep technical expertise are coming together to build globally relevant chip design companies from India.
Semiconductor startups are known to be difficult investments. They require long development cycles, heavy spending on research and development, and years of work before revenues begin. Because of these challenges, venture capital interest in Indian chip design remained limited for many years. This changed after the Government of India launched the DLI Scheme in 2022, which reduced early-stage risk by providing financial support, access to advanced electronic design automation (EDA) tools, and intellectual property resources. Startups are selected through a strict evaluation process led by experienced industry and technical experts, which has helped improve investor confidence in the sector.
Founded in Bengaluru in June 2024, C2i Semiconductors was started by a team with decades of experience at global semiconductor leaders such as Texas Instruments, National Semiconductor, and Maxim Integrated. The company was approved under the DLI Scheme in November 2024 and has rapidly scaled its engineering team to 65 members. It is now among the top users of shared EDA tools provided through the ChipIN Centre, reflecting both speed and seriousness of execution.
C2i is focused on a critical challenge facing modern data centres: power. As artificial intelligence workloads expand, data centres require extremely stable, high-density power systems. Older power architectures struggle with energy losses, excessive heat, reliability issues, and limited scalability. C2i is addressing this problem by redesigning power delivery inside servers, using a “grid-to-core” approach that manages electricity from the incoming power source all the way to the processor.
In simple terms, the company is building an intelligent power control system for AI data centres. This system dynamically optimises power in real time, improving efficiency, reducing heat, lowering failure rates, extending hardware life, and enabling faster and larger data centre expansion.
Recognising this potential, Peak XV Partners has led a $15 million Series A funding round, the largest raised so far by an Indian semiconductor startup. This follows an earlier $4 million round led by Yali Capital, taking total funding to around ₹170 crore. The investment aligns with the broader vision highlighted by Ashwini Vaishnaw, who has repeatedly emphasised the importance of strengthening India’s chip design capabilities alongside manufacturing, and building globally competitive, IP-led semiconductor companies from India.
Source: PIB
