India's C2i Semiconductors tapes out AI power chip as investors back scaling of data center power technology

C2i’s tape-out of an AI power management IC signals a strategic pivot in data center infrastructure—from raw compute to energy efficiency. A mere 5% gain in power delivery efficiency could erode NVIDIA and Intel’s dominance in rack-level power architecture, forcing foundries like TSMC to fast-track high-voltage BCD processes. While India lacks an integrated device manufacturing base, C2i’s U.S.-backed funding provides de facto export control insulation, granting it a rare 'geopolitically neutral' compliance edge. Yet, any tightening of U.S. EAR rules on high-efficiency power ICs would immediately destabilize its supply chain. Within 18 months, Infineon and ON Semi will likely counter with acquisitions or cross-licensing deals, while design houses in Taiwan, China face client attrition. Power delivery chips are poised to become the next HBM-like bottleneck segment—quietly critical and massively re-rated by capital.