Tessolve, a semiconductor engineering leader and part of Hero Electronix, has entered a definitive agreement to acquire Dream Chip Technologies, a German semiconductor design firm, for approximately ₹400 crore (EUR 42.5 million). The acquisition, pending regulatory approval, aims to boost it’s position in the global semiconductor sector, particularly in advanced chip and ASIC design.
This strategic move enhances it’s capabilities in System on Chip (SoC) design and strengthens its offerings in AI, automotive, data centers, and industrial applications. The acquisition also expands it’s European footprint, adding four locations across Germany and the Netherlands, including an ADAS and imaging lab that will serve as a center of excellence for these technologies.
According to Srini Chinamilli, Tessolve’s Co-founder and CEO, the acquisition reinforces it’s position as a top global player with extensive design-to-product capabilities. Dream Chip’s expertise will further enable Tessolve to handle complex ASIC design projects and solidify its European presence.
Dream Chip Technologies is highly regarded in Europe for its advanced digital chip design and embedded software. By integrating Dream Chip’s strengths with Tessolve’s established services in post-silicon testing and packaging, Tessolve can now offer a complete turnkey solution from initial design to production, which is expected to accelerate clients’ time to market.
Jens Benndorf, CEO of Dream Chip Technologies, emphasized that this merger would allow Dream Chip and Tessolve to offer comprehensive solutions, especially for complex, custom chip designs in automotive and enterprise sectors focused on camera-based and AI-driven ASIC applications. The all-cash acquisition positions it to meet the increasing demand for custom chips, a market shift that Hero Electronix Chairman Ujjwal Munjal noted as pivotal in the industry.
Founded in Bengaluru, Tessolve provides a full range of pre- and post-silicon services and counts nine of the top 10 global technology companies as clients. Its advanced silicon and testing labs help clients achieve faster market entry, delivering end-to-end solutions from design to fully packaged products.
