Tessolve has acquired Dream Chip Technologies, a German semiconductor chip design firm, for up to Rs4bn ($47.4m).

The Indian semiconductor engineering company expects the deal to bolster its system on chip (SoC) design capabilities, particularly in the AI, automotive, data centre, and industrial sectors.

The acquisition not only enhances Tessolve’s design prowess but also expands its European footprint, adding four delivery sites across Germany and the Netherlands.

This includes a specialised advanced driver assistance systems and imaging centre-of-excellence lab, positioning Tessolve among a select group of design companies worldwide capable of delivering turnkey design solutions for complex cutting-edge chips.

Dream Chip Technologies brings to Tessolve advanced chip architecture and front-end design capabilities.

This integration is expected to provide a critical “time to market” advantage and “operational excellence” to customers.

Tessolve co-founder and CEO Srini Chinamilli said: “This acquisition solidifies our position as a top-tier semiconductor engineering firm globally with unmatched design to productisation capabilities.

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

Dream Chip Technologies CEO Jens Benndorf said: “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 test and supply chain management for their most complex designs.  

“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.