Tessolve To Acquire European Chip Design Company For Around Rs 400 Crore

Tessolve, a Hero Electronix venture and a provider of semiconductor engineering solutions, has signed an agreement to acquire Dream Chip Technologies, a semiconductor chip design firm headquartered in Germany, for a consideration of up to Rs 400 crore.

The acquisition will help Tessolve deliver turnkey design solutions for complex chips. It also adds capabilities in system on chip designs for artificial intelligence, automotive, data centre and industrial markets. The acquisition will also expand Tessolve's European operations by adding four delivery locations across Germany and Netherlands, including a specialised ADAS and imaging lab.

“This acquisition solidifies our position as a top-tier semiconductor engineering firm globally with unmatched design to productisation capabilities,” said Srini Chinamilli, co-founder and chief executive officer of Tessolve. “Dream Chip's capabilities further strengthen our ability to take on leading edge ASIC design projects and greatly enhances our European footprint,” he said.

Dream Chip Technologies' chip architecture and front-end design capabilities combined with Tessolve's expertise in chip design and post-silicon test and packaging design will enhance the company's ability to deliver full chip turnkey design solutions from specification to volume silicon production.

"By combining our design capabilities and IP with Tessolve's established semiconductor services and embedded solutions, we can offer our customers a truly end-to-end solution from chip architecture to post-silicon test and supply chain management for their most complex designs,” said Jens Benndorf, chief executive officer of Dream Chip Technologies. 

Ujjwal Munjal, chairman of Tessolve, added, “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.”

The signing is subject to regulatory approvals.