DLI Scheme Strengthening Chip Design
India’s Design Linked Incentive (DLI) Scheme, launched in 2022, aims to reduce the financial and technological barriers faced by semiconductor startups. The programme provides financial assistance, access to advanced Electronic Design Automation (EDA) tools and intellectual property cores, along with ecosystem support to enhance commercial viability.
Before 2021, venture capital investments in semiconductor chip design in India remained limited due to long development cycles and high R&D costs. The DLI Scheme addresses this gap by de-risking early-stage innovation and improving investor confidence.
Startups selected under the DLI programme undergo rigorous screening by expert committees comprising industry and technical specialists, ensuring support reaches credible deep-tech enterprises.
C2i’s Journey and Innovation
Founded in Bengaluru on June 5, 2024, by a team with experience at global semiconductor leaders such as Texas Instruments, National Semiconductor and Maxim Integrated, C2i Semiconductors was approved for DLI support effective November 1, 2024.
Within months, the company ramped up its engineering team to 65 professionals and emerged as one of the top three users among nearly 100 companies accessing the centralised EDA tool grid at the ChipIN Centre under the DLI framework.
C2i is developing an intelligent, configurable power platform that reimagines how electricity flows inside servers—from grid input to processor core. Instead of improving isolated components, the company is building a system-level power-management architecture capable of optimising power delivery in real time.
Addressing AI Data Centre Challenges
As artificial intelligence workloads expand, data centres require stable, high-density power systems. Legacy power architectures were not designed for continuous AI-driven computation, leading to energy inefficiencies, excessive heat and reliability challenges.
C2i’s “grid-to-core” approach aims to solve this bottleneck. The technology is designed to deliver stable power during heavy AI processing, improve energy efficiency, reduce hardware stress and extend GPU lifespan. It also simplifies server architecture, enabling faster deployment and scalability.
The company expects its first silicon designs to return from fabrication by mid-year, after which validation and performance testing will begin.
Investor Confidence in Deep-Tech India
The $15 million Series A round was led by Peak XV Partners, formerly known as Sequoia Capital India & SEA. The investment follows an earlier $4 million funding round led by Yali Capital in 2024, taking total funds raised to approximately ₹170 crore in addition to DLI support.
According to industry estimates cited in the announcement, system-level innovations in power management could potentially unlock billions of dollars in efficiency savings across global AI infrastructure.
Policy Alignment with Semiconductor Vision
The funding aligns with the broader vision of India’s semiconductor programme, which seeks to strengthen both chip design and manufacturing while building domestic intellectual property. Union Minister for Electronics and IT Ashwini Vaishnaw has consistently emphasised the need to transform India’s strong chip design talent base into globally competitive product companies.
Under the semiconductor mission, the government is providing design incentives, access to advanced tools and ecosystem support to help startups scale globally.
With growing investor participation and structured policy backing, India’s semiconductor chip design sector is gradually emerging as a credible global innovation hub. C2i’s milestone funding round highlights how public policy and private capital are converging to strengthen India’s position in advanced semiconductor technology.
