Tessolve, a semiconductor engineering solutions provider and a Hero Electronix venture, has signed a definitive agreement to acquire Dream Chip Technologies, a prominent semiconductor chip design firm based in Germany. The acquisition, valued at up to ₹400 Crore (EUR 42.5 Million), is subject to regulatory approvals.
This strategic acquisition enhances Tessolve’s position among the elite design firms capable of delivering comprehensive turnkey solutions for advanced semiconductor chips. It significantly reinforces Tessolve’s leadership in the market by introducing sophisticated System-on-chip (SoC) design capabilities aimed at the artificial intelligence (AI), automotive, data centre, and industrial sectors. Additionally, the deal will expand Tessolve’s operations in Europe by adding four new delivery locations in Germany and the Netherlands, including a specialized lab focused on advanced driver-assistance systems (ADAS) and imaging.
“Our acquisition of Dream Chip solidifies our status as a global leading semiconductor engineering firm with unmatched design-to-productization capabilities,” stated Srini Chinamilli, Co-founder and CEO of Tessolve. He emphasized that Dream Chip’s technological strengths enhance Tessolve’s capacity to handle cutting-edge ASIC design projects and significantly broaden its European footprint.
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Dream Chip Technologies is renowned in the region for its expertise in intricate digital designs. It is recognized as one of Germany’s leading semiconductor design service companies. With its chip architecture, front-end design prowess, Tessolve’s strengths in chip design, and superior post-silicon testing and packaging expertise, the merged entity aims to deliver comprehensive turnkey design solutions from initial specifications to mass production. This collaboration is expected to provide significant advantages regarding “time to market” and operational efficiency for their clients. Notably, the transaction will be executed entirely in cash.
Jens Benndorf, CEO of Dream Chip Technologies, expressed enthusiasm about the partnership, saying, “We are thrilled to collaborate with Tessolve and integrate our digital chip design and embedded software expertise with their global platform. By merging our capabilities, we can deliver a truly end-to-end solution, encompassing everything from chip architecture to post-silicon testing and supply chain management for our clients’ most intricate designs.” He added that they will advance innovation in automotive and enterprise systems, particularly in AI-driven ASIC applications and camera-based technologies.
Mr. Ujjwal Munjal, Chairman of Tessolve, commented on the acquisition’s significance, remarking, “Tessolve has shown remarkable growth and resilience over the past few years. With the synergies from Dream Chip Technologies, I am confident that we are on the path to becoming a world leader in the semiconductor space. As major companies increasingly turn to custom chip design, this acquisition positions Tessolve to better meet the rising demands of the custom chip market.”