Tessolve expands footprint with €42.5 million acquisition of Dream Chip Technologies

Tessolve, a venture of Hero Electronix, has announced the signing of a definitive agreement to acquire 100% of Dream Chip Technologies, a leading semiconductor design firm based in Germany, for a consideration of up to €42.5 million. The acquisition is contingent upon receiving regulatory approvals.

This strategic move will elevate Tessolve's position among a select few global firms that can provide comprehensive turnkey design solutions for complex semiconductor projects. The deal enhances Tessolve's capabilities in system-on-chip (SoC) designs, particularly for the artificial intelligence (AI), automotive, data center, and industrial sectors. It also reinforces Tessolve's leadership in the semiconductor services industry.

In addition to strengthening its design expertise, the acquisition expands Tessolve’s European presence, adding four new delivery centers across Germany and the Netherlands. This includes a specialized center for Advanced Driver Assistance Systems (ADAS) and imaging, underscoring Tessolve’s commitment to providing state-of-the-art semiconductor and embedded design services.

Srini Chinamilli, Co-founder and CEO of Tessolve, commented, “This acquisition strengthens our global position as a premier semiconductor engineering firm, enhancing our capabilities in ASIC design and increasing our European footprint. Dream Chip’s cutting-edge expertise enables us to tackle next-generation design projects and expand our reach in the market.”

Dream Chip Technologies is known for its excellence in complex digital chip design, particularly its expertise in chip architecture and front-end design. By combining Dream Chip’s capabilities with Tessolve’s strengths in chip design, post-silicon testing, and packaging, the acquisition allows Tessolve to offer a comprehensive end-to-end service from design to volume production. This positions the company to deliver faster time-to-market and enhanced operational efficiency for its customers.

Jens Benndorf, CEO of Dream Chip Technologies, expressed excitement about the merger, saying, “Joining forces with Tessolve will allow us to combine our advanced digital design and embedded software capabilities with Tessolve’s semiconductor services, providing a complete solution from chip architecture to post-silicon testing. Together, we will drive innovation in automotive and enterprise applications, particularly in AI and camera-based systems.”

Ujjwal Munjal, Chairman of Tessolve, added, “Tessolve has shown remarkable growth and resilience, and with the added strength from Dream Chip Technologies, we are poised to become a global leader in custom chip design. As more companies move toward bespoke chip solutions, this acquisition positions Tessolve to meet the increasing demand in the custom chip market.”

The acquisition, a 100% cash transaction, is expected to accelerate Tessolve's growth trajectory and enable the company to deliver advanced, high-quality semiconductor solutions to its global customer base.