Tessolve acquisition: Tessolve to buy German chip designer for Rs 400 crore

Semiconductor engineering solutions provider Tessolve has signed a definitive pact to wholly acquire German semiconductor chip design firm Dream Chip Technologies for up to Rs 400 crore. Srini Chinamilli, cofounder and chief executive officer of Tessolve told ET that the deal positions Bengaluru-based Tessolve among a select group of design firms worldwide capable of delivering turnkey design solutions for complex cutting-edge chips.

He added that it also bolsters Tessolve’s ability to add advanced capabilities in System on Chip (SoC) designs to cater to the AI, automotive, data centre, and industrial markets.

It will also serve to expand the company’s European operations by adding four delivery sites across Germany and the Netherlands, including a specialised Advanced Driver Assistance Systems (ADAS) and imaging centre-of-excellence lab.

“Dream Chip’s capabilities further strengthen our ability to take on leading edge ASIC design projects and greatly enhance our European footprint,” Chinamilli said.

Jens Benndorf, CEO of Dream Chip said the company’s design capabilities and IP combined with Tessolve’s established semiconductor services and embedded solutions can offer customers end-to-end solutions from chip architecture to post-silicon test and supply chain management for developing complex designs.

“Together, we will push the boundaries of innovation in automotive and enterprise designs, particularly in camera-based systems and AI-driven application-specific integrated circuit (ASIC) applications,” Benndorf said. ET reported on Tuesday that Hero Electronix, backed by Suman Kant Munjal, was planning to sell a 25-30% stake in Tessolve to cash in on growing investor appetite in the space. Chinamilli, on his part, however said Hero Electronix is a majority shareholder that is excited about the company’s prospects and will remain a majority shareholder for years to come.

“Hero Electronix is a majority shareholder in Tessolve and they are here for the long term,” he said. “They are not planning to get out of Tessolve anytime soon. They are committed to growth, and they are going to be with us. They’re very excited about being part of Tessolve, so they’ll be shareholders in our company for a long time.”