Tessolve, an India-based semiconductor engineering firm owned by Hero, the world's largest two-wheeler brand, has acquired German-based IC design house Dream Chip Technologies. This acquisition marks a significant step in India's efforts to expand its in-house semiconductor capabilities in both design and production.
According to the Hindu BusinessLine, Autocar Professional, and EE News Europe, Tessolve signed a definitive agreement with Dream Chip Technologies to acquire the latter's 100% stakes for INR4 billion (approx. US$47.78 million) from China-based Goodix, which bought Dream Chip in 2020.
Tessolve's acquisition positions the company among a select group of firms offering turnkey design solutions for complex chips. It will enhance capabilities in System-on-chip (SoC) designs for AI, automotive, data center, and industrial markets. The deal also expands Tessolve's European presence, adding four locations in Germany and the Netherlands, including an ADAS and imaging lab. The acquisition is a 100% cash transaction, pending regulatory approvals.
According to Srini Chinamilli, co-founder and CEO of Tessolve, the acquisition enhances its position as a top global semiconductor engineering firm, strengthening its design and productization capabilities. The deal also boosts Tessolve's ability to handle advanced ASIC design projects and expands its presence in Europe.
Tessolve, a Bengaluru-based venture of Hero Electronix with 3,000 employees, provides a full range of pre- and post-silicon services. Operating in over ten countries, the company serves nine of the top 10 global technology firms. Tessolve's advanced silicon and system testing labs enable faster market entry by offering end-to-end solutions from design to packaged components.
Meanwhile, in 2023, Dream Chip successfully developed a 10TOPS automotive AI chip featuring accelerators from TU Dresden and Cadence, as well as an Arm Cortex-R52 functional safety core and dual-core Arm Cortex-A65 processor cluster with an Arteris FlexNoC Network-on-Chip.
Integrating Dream Chip Technologies' chip architecture and front-end design with Tessolve's expertise in chip design, post-silicon testing, and packaging will strengthen their ability to provide full turnkey solutions, offering customers faster time-to-market and operational excellence.
Ujjwal Munjal, chairman of Tessolve, stated that the acquisition of Dream Chip Technologies strengthens the company's position as a global leader in custom chip design, enabling it to better meet the growing demands of the market as major companies shift towards custom chip solutions.
