According to reports, semiconductor engineering solutions provider Tessolve has signed a definitive pact to acquire German semiconductor chip design firm Dream Chip Technologies for up to Rs 400 crore.

Srini Chinamilli, co-founder and chief executive officer of Tessolve says, “The deal positions Bengaluru-based Tessolve among a select group of design firms worldwide capable of delivering turnkey design solutions for complex cutting-edge chips.”

It will also enhance Tesolve's ability to add advanced capabilities to system-on-chip (SoC) designs for AI, automotive, data center, and industrial markets.

It will also expand the company's European operations by adding four delivery sites across Germany and the Netherlands, including specialized labs for advanced driver assistance systems (ADAS) and image processing centers of excellence.

“Dream Chip’s capabilities further strengthen our ability to take on leading-edge ASIC design projects and greatly enhance our European footprint,” adds Srini.

Jens Benndorf, CEO of Dream Chip says, “The Company’s design capabilities and IP combined with Tessolve’s established semiconductor services and embedded solutions can offer customers end-to-end solutions from chip architecture to post-silicon test and supply chain management for developing complex designs.”

“Together, we will push the boundaries of innovation in automotive and enterprise designs, particularly in camera-based systems and AI-driven application-specific integrated circuit (ASIC) applications," adds Jens.

According to reports, Hero Electronix, backed by Suman Kant Munjal, was planning to sell a 25-30 percent stake in Tessolve to cash in on growing investor appetite in the space. Srini, on his part, however, said Hero Electronix is a majority shareholder who is excited about the company's prospects and will remain a majority shareholder for years to come.

“Hero Electronix is a majority shareholder in Tessolve and they are here for the long term. They are not planning to get out of Tessolve anytime soon. They are committed to growth, and they are going to be with us. They're very excited about being part of Tessolve, so they'll be shareholders in our company for a long time," adds Srini.