Hero Electronix’s Tessolve Seals Rs 400 Crore Deal to Acquire German-Based Chip Designer

Hero Electronix's semiconductor arm, Tessolve, has signed an agreement to acquire the German chip designer, Dream Chip Technologies for Rs 400 crore.

The deal is expected to boost the positioning of Tessolve in the chip industry. The acquisition will help the Bangalore-based company "by adding advanced capabilities in SoC (System on Chip) designs for Artificial Intelligence, automotive, data centers and industrial markets."

More importantly, the deal will give a push to Tessolve in expanding its base in Europe. The company will be adding four new locations in Germany and Netherlands.

“This acquisition solidifies our position as a top tier semiconductor engineering firm globally with unmatched design to productization 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 is a leading semiconductor design service provider in Germany. The company is known for its expertise in complex digital designs.

"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.

The company’s chip architecture and front-end capabilities will strengthen Tessolve’s area of expertise in chip design, testing and packaging. This will also help the company in providing complete chip solutions to customers.

According to Wright Research, India’s semiconductor industry is expected to reach $110 billion by the end of this decade. This is primarily owing to the country's increasing semiconductor consumption which is set to hit $64 billion by 2026 from $22 billion in 2019.