India’s semiconductor chip design ecosystem is expanding as deep-tech startups attract stronger investor interest under the Design Linked Incentive (DLI) Scheme. The latest example is C2i Semiconductors, a Bengaluru-based company developing power-management solutions for AI data centres and cloud infrastructure. The firm has received financial support and access to advanced chip-design tools under the scheme, reflecting a broader policy push to reduce early-stage risk in semiconductor design.
DLI Scheme and Startup Support
The DLI Scheme, announced by the Government of India in 2022, aims to strengthen domestic chip design capability. It supports startups through financial assistance, access to electronic design automation tools, IP cores and ecosystem support. Companies are screened by an expert committee with technical and industry specialists before receiving support. This framework is designed to improve credibility, reduce upfront costs and encourage private investment in a sector known for long development cycles and high R&D expenditure.
C2i Semiconductors and Its Technology
C2i Semiconductors was incorporated in Bengaluru on 5 June 2024 by a team with experience at global semiconductor firms such as Texas Instruments, National Semiconductor and Maxim Integrated. The company is working on a grid to core power architecture for modern servers. Its system is intended to manage electricity flow from the power source to the processor chip in real time. Key aims of the technology include:
- Stable power delivery for AI workloads.
- Reduced heat generation and energy loss.
- Better reliability and longer equipment life.
- Simplified server design and faster deployment.
Funding and Ecosystem Impact
C2i has been backed by Peak XV Partners, which led a $15 million funding round. This followed a $4 million round led by Yali Capital in 2024. The company’s total funding has reached about ₹170 crore, including DLI support. Its engineering team has grown rapidly, and it has become one of the top users of the centralised EDA tools available through the ChipIN Centre under the DLI Scheme. This indicates rising confidence in India’s design-led semiconductor ecosystem.
India’s Semiconductor Design Push
The development aligns with India’s broader semiconductor strategy, which seeks to build domestic intellectual property, support product companies and create globally competitive design capabilities. The focus is not only on manufacturing but also on strengthening the design base, which is essential for long-term technological self-reliance.
Last Modified: April 28, 2026