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 Rs. 4 billion (US$ 48 million), is expected to strengthen Tessolve's position in the semiconductor industry, particularly in System on Chip (SoC) designs for sectors such as AI and automotive.

The acquisition will enable Tessolve to provide turnkey design solutions for complex, advanced chips, enhancing its market standing. The move will incorporate Dream Chip's expertise in SoC designs for artificial intelligence (AI), automotive, data centre, and industrial markets, further bolstering Tessolve's industry position.

A boost to Tessolve's presence

Geographically, the acquisition will significantly expand Tessolve's presence in Europe, with the addition of four new delivery locations in Germany and the Netherlands, including a specialised ADAS & imaging centre-of-excellence lab.

This strategic move underscores Tessolve's commitment to delivering advanced semiconductor and embedded design solutions while enhancing its 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 undertake leading-edge ASIC design projects and greatly enhance our European footprint," he added.

Dream Chip Technologies

Headquartered in Germany, Dream Chip Technologies has a team of specialised engineers and solution architects. Recognised for its expertise in complex digital designs, the company is regarded 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 testing, and packaging design. This collaboration will expand the company's ability to provide comprehensive, turnkey chip design solutions, covering the entire process from initial specification to high-volume silicon production, giving customers a considerable 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 testing 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, represents a strategic move towards capitalising on the growing 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."