India’s Semiconductor Startups Gain Momentum with Government Support
India’s semiconductor chip design ecosystem is experiencing significant growth, drawing increasing interest from both investors and users. Under the Design Linked Incentive (DLI) Scheme, launched in 2022, startups are receiving essential financial support and access to advanced design tools, making the industry more appealing amid traditionally high risks associated with semiconductor ventures.
Historically, the semiconductor sector in India has seen limited venture capital investments due to the long development timelines and substantial research and development (R&D) costs involved. However, the DLI Scheme mitigates upfront risks by enhancing access to critical resources and ensuring that funds are directed towards credible deep-tech enterprises. This structured approach is helping to build investor confidence and bolster the commercial viability of supported startups.
C2i Semiconductors: A Rising Star
One such startup making waves in this ecosystem is C2i Semiconductors. Founded on June 5, 2024, in Bengaluru by an experienced team from industry giants like Texas Instruments and Maxim Integrated, C2i has quickly gained recognition. As of November 1, 2024, it was approved for financial support under the DLI Scheme, which facilitates access to sophisticated chip design tools.
With a rapidly growing engineering team of 65 professionals, C2i is focused on developing innovative power-management semiconductor solutions tailored for next-generation AI data centers and cloud infrastructures. The company has already emerged as one of the top three users of centralized EDA tools provided by the ChipIN Centre under the DLI Scheme.
Addressing Challenges in Modern Data Centers
As artificial intelligence (AI) workloads expand, modern data centers are increasingly struggling with power supply issues, as traditional systems are ill-equipped for high-density computing. This often leads to energy loss, excessive heat, and challenges in scaling infrastructure.
C2i Semiconductors is tackling this challenge head-on by rethinking power delivery within servers. Instead of merely enhancing individual components, the company is innovating a smart configurable power platform capable of managing and optimizing power in real time. This approach ensures stable power delivery even under heavy AI workloads, improves energy efficiency, reduces heat output, and extends the longevity of equipment.
An Intelligent Solution for Tomorrow’s Infrastructure
The technology developed by C2i serves as an intelligent power management system, bolstering the reliability of high-performance AI systems within next-generation digital infrastructures. The company anticipates its first silicon designs to return from fabrication by mid-year for performance validation.
With a strong backing from investors, C2i recently secured $15 million led by Peak XV Partners (formerly Sequoia Capital India & SEA) to fuel the development of its cutting-edge power delivery solutions. This follows a previous funding round of $4 million from Yali Capital in 2024, amounting to approximately ₹170 crore in total investments raised, alongside governmental support through the DLI Scheme.
Supporting India’s Semiconductor Vision
Rajan Anandan, Managing Director at Peak XV, expressed optimism about C2i’s advancements, noting their potential to significantly prolong GPU life and save billions for the industry. This aligns with the Indian government’s commitment to fostering a robust semiconductor ecosystem. Union Minister Shri Ashwini Vaishnaw highlighted the objective of strengthening both semiconductor design and manufacturing in India, focusing on creating domestic intellectual property and competitive product companies.
With the backing of initiatives like the DLI Scheme, the government aims to empower startups to transition into global technology leaders, reinforcing India’s position as a trusted partner in the semiconductor industry.
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