November 6, 2024 — Tessolve, a Hero Electronix venture and a leader in semiconductor engineering, has signed a definitive agreement to acquire Dream Chip Technologies, a semiconductor chip design firm headquartered in Germany, for around ₹400 Crore (EUR 42.5 million).
This acquisition, which is subject to regulatory approvals, will bolster Tessolve’s presence in the global semiconductor sector, particularly in the chip/ASIC design domain.
The acquisition of Dream Chip Technologies positions Tessolve among a group of global design firms equipped to deliver comprehensive solutions for complex, advanced semiconductor chips. By integrating Dream Chip’s capabilities, Tessolve aims to strengthen its expertise in System on Chip (SoC) design, expanding into critical sectors such as artificial intelligence (AI), automotive, data centres, and industrial applications.
This strategic acquisition will also expand Tessolve’s European presence, adding four delivery locations in Germany and the Netherlands, including a specialised ADAS (Advanced Driver Assistance Systems) and imaging lab, which will serve as a centre of excellence. The move aligns with Tessolve’s commitment to provide cutting-edge semiconductor and embedded design solutions while enhancing its share in the semiconductor services market.
Tessolve’s co-founder and CEO, Srini Chinamilli, said, “This acquisition solidifies our position as a top-tier semiconductor engineering firm globally with unmatched design to productisation capabilities. Dream Chip’s capabilities further strengthen our ability to take on leading-edge ASIC design projects and greatly enhances our European footprint.”
Dream Chip Technologies is well-regarded in Europe for its sophisticated digital chip designs and embedded software expertise. Combining Dream Chip’s capabilities with Tessolve’s strengths in post-silicon testing and packaging, Tessolve now offers a more robust full-chip turnkey solution, spanning from initial specifications to volume production of silicon. This holistic capability is expected to provide Tessolve’s clients with a significant “time to market” advantage and operational efficiency.
Jens Benndorf, CEO of Dream Chip Technologies, said by combining their design capabilities and IP with Tessolve’s established semiconductor services and embedded solutions, Dream Chip can offer customers a truly end-to-end solution from chip architecture to post-silicon test and supply chain management for most complex designs. He added that this merger would drive innovation, especially in automotive and enterprise sectors, with a focus on camera-based systems and AI-driven ASIC applications.
The transaction, valued at ₹400 Crore, is an all-cash deal. Hero Electronix’s Chairman, Ujjwal Munjal, said as major companies increasingly shift towards custom chip design, this acquisition positions Tessolve more strongly than ever to meet the growing demands of the custom chip market.
Tessolve, founded in Bengaluru, India, offers a comprehensive suite of pre- and post-silicon services. The company operates in over 10 countries and counts nine of the top 10 global technology companies among its clients. Tessolve’s advanced silicon and system testing labs enable faster market entry for its clients by delivering end-to-end solutions from design to packaged components.
