This strategic move underscores Tessolve's commitment to delivering advanced semiconductor and embedded design solutions while strengthening its market presence within the semiconductor services sector.Hero Electronix's subsidiary, Tessolve, a semiconductor engineering solutions provider, has signed an agreement to acquire 100% of Dream Chip Technologies, a German semiconductor chip design company. The deal, valued at up to INR 400 crore (EUR 42.5 Million), is expected to enhance Tessolve's position in the semiconductor industry, particularly in System on Chip (SoC) designs for various sectors like AI and automotive.
The acquisition will provide Tessolve with turnkey design solutions for complex, cutting-edge chips, strengthening its market position. The move will incorporate Dream Chip's expertise in SoC designs for artificial intelligence (AI), automotive, data center, and industrial markets, further solidifying Tessolve's industry standing.
A boost to Tessolve's presence
Geographically, the acquisition will significantly expand Tessolve's presence in Europe. The addition of four new delivery locations in Germany and the Netherlands, including a specialised ADAS & imaging center-of-excellence lab, highlights this expansion. This strategic move underscores Tessolve's commitment to delivering advanced semiconductor and embedded design solutions while strengthening its market presence within the semiconductor services sector.
“This acquisition solidifies our position as a top tier semiconductor engineering firm globally with unmatched design to productisation capabilities,” said Srini Chinamilli, Co-founder & CEO 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 added.
Dream Chip Technologies
Dream Chip Technologies, headquartered in Germany, boasts a team of specialised engineers and solution architects. The company is recognised for its prowess in complex digital designs, establishing its reputation as a leading semiconductor design service provider in the region.
The merger will combine Dream Chip's expertise in chip architecture and front-end design with Tessolve's strengths in chip design, post-silicon test, and packaging design. This collaboration will enhance the company's ability to provide complete, turnkey chip design solutions. This end-to-end approach will cover the entire process from initial specification to volume silicon production, offering customers a significant advantage in terms of time-to-market and operational excellence.
“We are excited to join forces with Tessolve and bring our expertise in digital chip design and embedded software to a global platform. 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, CEO of Dream Chip Technologies. “Together, we will push the boundaries of innovation in automotive and enterprise designs, particularly in camera-based systems and AI-driven ASIC applications,” he added.
Custom chip design solutions
The acquisition, structured as a 100% cash transaction, signals a strategic move towards capitalizing on the increasing demand for custom chip design solutions.
Ujjwal Munjal, Chairman of Tessolve, remarked, “Over the past few years, Tessolve has demonstrated impressive growth and resilience. With the synergy brought by Dream Chip Technologies, I am confident that Tessolve is poised to become a world leader in this space with unparalleled capabilities. 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.”
