C2i Semiconductors has raised $15 million in a funding round led by Peak XV Partners, the venture firm formerly known as Sequoia India and Southeast Asia, according to a report by BW Disrupt.

The startup carries a notable endorsement: Intel's chief executive counts among its backers. That connection alone sets C2i apart in a seed-to-growth landscape where most chip startups struggle to attract investors deterred by capital intensity and long development cycles.

Peak XV Partners leading the round signals continued appetite among large India- and Southeast Asia-focused funds for semiconductor plays. The firm, which manages billions across its successor vehicles after splitting from Sequoia Capital in 2023, has been an active investor in the region's deeptech ecosystem.

The $15 million commitment is modest by semiconductor standards, where a single fab can cost tens of billions of dollars. For a fabless or design-services startup, however, that sum can fund several years of engineering work — IP development, design wins, and the slow qualification cycles that define the path to revenue in this industry.

Details about C2i's specific product focus, valuation, and other participating investors were not disclosed in the report. The company's backing by Intel's CEO suggests its technology touches areas strategic to the world's largest processor maker, whether in design services, silicon IP, packaging, or adjacent tooling.

The funding lands amid a broader shift in how venture capital treats semiconductors. A decade ago, chip startups were largely written off as poor venture investments. That calculus changed with the AI boom, as accelerators and specialized silicon demonstrated that design-led companies can reach outsized valuations without owning fabs.

India's semiconductor push adds another layer of context. Government incentives running to roughly $10 billion under the national program have drawn proposals from Tata Electronics, Micron, and others, and a growing pool of domestic design startups now feeds that pipeline. Investors increasingly view chip design talent in the region as an underpriced asset.

For Peak XV, the deal extends a pattern of backing foundational technology companies rather than consumer internet plays — a strategic reorientation the firm has pursued since its rebranding.

The question ahead is execution. C2i must convert its capital and high-profile endorsement into products that survive the qualification gauntlet of semiconductor customers, where design cycles run 18 to 36 months and switching costs favor incumbents. If the company clears that bar, the round may mark an early data point in a broader movement of venture capital into India-centered chip design.